CFTC Chairman pushes for token conversion, opens the door to on-chain shares in SEC

Michael Selig, chairman of the Commodity Futures Trading Commission (CFTC), said that financial markets should be prepared for a large-scale token makeover as regulators adjust existing frameworks to address blockchain , artificial intelligence and on-chain markets.

Speaking at the United States Sovereign Debt Market Conference on Tuesday, Selig said that the token is expected to become the basis for a more efficient financial system with near-instantaneous settlement and real-time collateral flows between clearing houses, intermediaries and users.

"Just as the transition from gesture signals to electronic trading has driven progress in the financial system, I believe that token will bring about the same change for all asset classes", Selig said.

Selig said in August that if Congress fails to pass the CLARITY Act, the CFTC will move forward with crypto regulation under its existing authority. The Senate failed to advance the bill on September 15.

Related report: CFTC warns against high-risk futures and options contracts

On September 17, the CFTC submitted a regulatory action covering crypto asset transactions and markets to the White House for review. The document is still in its preliminary stages of rule-making, without elaborating on what regulation would be planned.

SEC is also pushing the market towards on-chain

Officials of the Securities and Exchange Commission (SEC) are also promoting token 's market development.

In an interview with Bloomberg TV, Jamie Selway, the head of SEC 's Trading and Markets division, said that although digitization and encryption have been politicized in recent times, it is not a politicised function at all.

According to Selway, United States 's success in developing these markets should be supported by both parties.

On September 17, SEC was granted a temporary innovation exemption for the trading of shares in token and United States .

The exemption allows certain platforms to trade digital versions of United States listed shares under specific conditions.

Paul Atkins, the chairman of SEC , said in February that such exemptions could facilitate transactions at a time when regulators are setting long-term rules.

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