US Commodity Futures Trading Commission (CFTC) head Michael Selig declared that financial markets ought to get ready for widespread tokenization as regulatory bodies adjust current structures to accommodate blockchain technology, artificial intelligence, and onchain markets.
Speaking at the US Treasury Market Conference on Tuesday, Selig noted that tokenizing real-world assets (RWAs) might serve as the bedrock for an enhanced financial ecosystem, facilitating almost instantaneous settlement and real-time collateral transfers among users, intermediaries, and clearinghouses.
“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 remarked, further mentioning that the CFTC intends to implement principles-based regulations as tokenization and onchain finance progress.
Selig mentioned back in August that the CFTC would proceed with cryptocurrency regulations via its current powers if Congress neglected to pass the CLARITY Act. The Senate did not advance the legislation on September 15.
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On September 17, the CFTC forwarded a regulatory action plan addressing crypto asset markets and transactions for White House evaluation. This filing remains in the prerule phase and omits specifics regarding the proposed rules.
SEC also moves to bring markets onchain
Representatives within the US Securities and Exchange Commission (SEC) have similarly advocated for the expansion of tokenized marketplaces.
During a Bloomberg TV discussion, Jamie Selway, Director of the SEC’s Division of Trading and Markets, expressed that tokenization and crypto have lately experienced politicization but inherently do not constitute political functions.
Selway suggested that America’s triumphs in advancing these markets ought to draw bipartisan backing.
On September 17, the SEC approved a short-term Innovation Exemption aimed at tokenized trading of US equities.
This waiver permits designated platforms to facilitate the trading of digital equivalents of equities listed in the US under specified terms.
SEC leader Paul Atkins mentioned during February that such waivers could support onchain exchange activities while authorities formulate permanent regulations.
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Originally published at https://cointelegraph.com/news/cftc-selig-mass-tokenization-sec-onchain-markets?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound.
