CFTC Chair Calls for Large-Scale Tokenization Amid Wall Street Integration Challenges

CFTC Chair Michael Selig stated that U.S. markets must prepare for large-scale tokenization, on-chain finance, and 24/7 trading. While the CFTC has begun allowing certain stablecoins as collateral, Selig emphasized that a one-size-fits-all approach to 24/7 trading is not feasible. Wall Street faces three major hurdles to full integration: 24/7 collateral management, legal enforceability of on-chain asset rights, and the establishment of continuous risk management and valuation mechanisms.