U.S. Commodity Futures Trading Commission Chair Michael Selig said at a U.S. Treasury market conference that real-world asset tokenization could underpin a more efficient financial system as markets undergo rapid technological change. He said blockchain could enable near-instant settlement and real-time collateral movement among clearinghouses, intermediaries and end users.

Selig said derivatives markets are increasingly adopting digital infrastructure built on blockchain, stablecoins and other technologies. He described real-world asset tokenization as one of the most important innovations for the future of the financial system.

“High-quality tokenized collateral has the potential to make liquidity more dynamic and markets more resilient,” Selig said.

He compared tokenization’s potential impact across asset classes with the transition from hand signals to electronic trading.

CFTC prepares for onchain finance

Selig said the regulator must prepare markets for onchain finance and round-the-clock trading. However, he said the CFTC does not plan to apply a one-size-fits-all approach across all asset classes.

The regulator is working on rules governing the use of tokenized collateral in derivatives markets. It has also published frequently asked questions about tokenized collateral and continues to refine the relevant rules.

Selig said the CFTC would next seek additional ways to responsibly introduce stablecoins for market participants, exchanges and clearinghouses.

Stablecoins in market infrastructure

Selig said stablecoins could have a distinct role as financial markets move to digital infrastructure. Following passage of the GENIUS Act, the CFTC is considering the use of stablecoins in derivatives markets.

In Selig’s view, stablecoins and tokenized collateral could make the movement of capital and collateral among financial-system participants more efficient.

He said the regulatory approach should remain principles-based. According to Selig, the CFTC will support innovations that strengthen the resilience and competitiveness of U.S. markets while preserving market integrity.

Selig said tokenization, onchain finance and round-the-clock trading could help produce more change in financial markets over the next decade than occurred during the previous several decades combined.

In April 2026, Selig said the CFTC would deploy artificial intelligence to offset staff cuts.

Source: Incrypted