CFTC Chair Calls for “Mass Tokenization” as SEC Grants Stock Trading Exemption

CFTC Chair Michael Selig said financial markets should prepare for “mass tokenization” of assets as regulators adapt existing frameworks for blockchain and onchain trading, marking a significant shift in US regulatory posture toward tokenized financial markets.

Selig delivered remarks at the US Treasury Market Conference on Tuesday, stating that tokenization could transform settlement and collateral movement across financial infrastructure. “Just as the transition from hand signals to electronic trading advanced our financial system, I believe tokenization can do the same for all asset classes,” Selig said.

The CFTC submitted a regulatory action on September 17 covering crypto asset transactions and markets for White House review. The filing remains at the “prerule” stage and does not detail planned regulations. In August, Selig had stated the CFTC would move ahead with crypto rules under existing authority if Congress did not pass the CLARITY Act. The Senate failed to advance that legislation on September 15.

SEC Grants Innovation Exemption

On the same day the CFTC submitted its action, the SEC granted a temporary “Innovation Exemption” allowing tokenized US stock trading on certain platforms under specific conditions. SEC Chair Paul Atkins said in February that the exemption could facilitate onchain trading while regulators developed longer-term rules.

The SEC did not specify which platforms received the exemption or detail the conditions governing its use.

Regulatory Alignment on Tokenization

Jamie Selway, SEC Division of Trading and Markets Director, stated that tokenization and crypto have recently become politicized but should receive bipartisan support for US market development. Selway called the function “not naturally a politicized function.”

Tokenization of real-world assets could enable near-instant settlement and real-time collateral movement between clearinghouses, intermediaries and users, according to market structure analysis. The regulatory actions suggest both agencies are attempting to accommodate onchain markets within existing frameworks rather than wait for new legislation.