The Commodity Futures Trading Commission (CFTC) said U.S. financial markets must prepare for the large-scale tokenization of assets (the representation of traditional instruments as digital tokens on blockchain rails), the growth of on-chain finance, and the expansion of round-the-clock trading, according to the agency's chairman, Michael Selig.

Speaking at the U.S. Treasury Market Conference at the Federal Reserve Bank of New York, Selig said developments across tokenization, blockchain, and artificial intelligence — together with the move toward 24/7 trading — could reshape financial markets over the next decade.

The derivatives regulator, which oversees the U.S. futures and swaps markets, is already preparing for such a shift. The CFTC has sought comment on extending certain derivatives markets to round-the-clock trading and, in May 2026, issued guidance outlining the regulatory considerations involved in continuous trading, clearing, and settlement.

According to Selig, tokenized real-world assets could enable near-instant settlement, with collateral able to move in real time between clearinghouses, intermediaries, and end users — a contrast with the fixed daily settlement cycles that govern much of today's traditional market infrastructure.

As part of that preparation, the CFTC has expanded the range of eligible collateral — the assets market participants post to back their derivatives positions — to include certain payment stablecoins issued by national trust banks. Stablecoins are digital tokens designed to maintain a steady value, most commonly pegged to the U.S. dollar. The agency also said it intends to explore further ways to support the responsible use of stablecoins by exchanges, clearinghouses, and other market participants.

The comments come as the Securities and Exchange Commission separately moves to facilitate on-chain trading of tokenized securities, even as broader U.S. cryptocurrency legislation, including the CLARITY Act, remains stalled in Congress. The CFTC's public comment process, the SEC's parallel efforts on tokenized securities, and congressional action on the CLARITY Act are among the key threads to watch as these market-structure changes move forward.

Selig added that the CFTC would not apply a one-size-fits-all approach to 24/7 markets, noting that crypto and precious metals may be better suited to continuous trading than agricultural commodities, energy products, and some financial derivatives.

Taken together, the chairman's remarks position tokenization, on-chain finance, and continuous trading among the CFTC's current regulatory priorities as U.S. market infrastructure adapts to blockchain-based finance.