CFTC Chair Michael Selig has called for preparations for the large-scale tokenization of financial markets, stating that blockchain and tokenized assets could form the foundation of a new financial system with near-instant settlements and real-time collateral movement.

24/7 On-Chain Markets and the Role of Stablecoins

According to Selig, the agency is preparing regulations for the development of on-chain finance and round-the-clock 24/7 markets, where stablecoins are expected to play a key role as an infrastructure element.

Tokenization Could Transform All Asset Classes

Selig compared the potential impact of tokenization on all asset classes to the way electronic trading transformed traditional markets.

Cryptocurrency and Metals Ready for 24/7 Trading

The CFTC believes that cryptocurrency and precious metals may already be ready for 24/7 trading.