Regulators need to prepare markets for "mass tokenization" while tailoring current markets for new technology such as blockchain and artificial intelligence, Commodity Futures Trading Commission Chair Michael Selig said, according to The Block. "With developments like tokenization, on-chain finance, and 24/7 trading, the next decade will likely bring more change to financial markets than the previous several decades combined," Selig said Tuesday during a US Treasury market conference at the New York Fed. He said the US will continue to lead, adding that across the Trump administration officials have already laid the groundwork by embracing innovation, encouraging competition, right-sizing regulation and maintaining the trust that has made US markets the global gold standard.

Over the past year, the CFTC has issued guidance and sought public comments on 24/7 trading for energy derivatives markets, reflecting its growing interest in round-the-clock markets. In February, it expanded its list of eligible collateral to include stablecoins issued by national trust banks, and Selig said the agency will look for more ways to encourage responsible stablecoin adoption among market participants, exchanges and clearinghouses.

Meanwhile, the CFTC's sister agency, the Securities and Exchange Commission, released its long-anticipated "innovation exemption" last week to make room for on-chain trading of tokenized stock. Both agencies are pressing ahead after a broader bill to regulate the crypto industry stalled in the Senate.