Chairman of the Commodity Futures Trading Commission (CFTC) Michael Selig called for preparing markets for mass tokenization during a conference at the Federal Reserve Bank of New York. He emphasized the need for markets to adapt to new technologies such as blockchain and artificial intelligence, and identified real-world assets (RWA) as one of the key directions. Selig noted that such assets are capable of providing near-instant settlements and real-time collateral movement between clearing organizations, intermediaries, and market participants.
According to Selig, "with the development of tokenization, on-chain finance, and 24/7 trading, the next decade is likely to bring more changes to financial markets than several previous ones combined." He also opposed a one-size-fits-all approach to 24/7 trading. Selig noted that crypto assets and precious metals might be suitable for such a trading regime, whereas agricultural commodities, energy carriers, and some financial instruments require additional evaluation.
In May of this year, the CFTC issued guidelines for trading platforms, clearing organizations, and intermediaries planning to transition to 24/7 trading, clearing, and settlements. In June, the agency sought market comments regarding 24/7 trading of standard futures and perpetual contracts on physically deliverable or stored energy carriers. The guidelines emphasize the necessity of digital infrastructure and the global nature of the crypto market as factors that simplify the transition of crypto derivatives to 24/7 trading. Additionally, Selig expressed his intention to seek additional ways for the responsible use of stablecoins by market participants, exchanges, and clearing organizations. In September, the CFTC's division for market participants expanded leniencies for providers of "passive" trading software, noting that under certain conditions, the agency would not recommend sanctions for activities without registering as an introducing broker.
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