CFTC launches initiative to allow the use of tokenized collateral and stablecoins in the US Derivative market.
The US financial regulator is accelerating the modernization of traditional markets through blockchain technology. The Commodity Futures Trading Commission (CFTC) announced a new initiative on September 23 that would allow the use of tokenized collateral, including stablecoins, in regulated Derivative markets.
The initiative builds on recommendations from the President’s Working Group on Digital Asset Markets and builds on the work of the CFTC’s Crypto CEO Forum in February. Acting Chair Caroline D. Pham asserted that the public has spoken about the future of the crypto market, with collateral management being a key application of stablecoins in this space.
Modernizing financial infrastructure
The CFTC invites stakeholders to submit comments by October 20, demonstrating its commitment to working closely with the industry to develop an appropriate regulatory framework. Pham emphasized that tokenized collateral has the potential to modernize infrastructure and improve Capital efficiency in U.S. markets.
Leading business leaders have expressed strong support for the initiative. Circle President Heath Tarbert noted that the GENIUS Act would allow stablecoins like USDC to be used in Derivative markets, unlocking liquidation while minimizing systemic risk. Coinbase's Greg Tusar described stablecoins as the future of money, while Ripple's Jack McDonald said that clear rules would strengthen market trust and resilience.
Crypto.com ’s Kris Marszalek supports the CFTC’s approach to non-cash collateral like Bitcoin and CRO, expanding the scope of applications of digital assets in the traditional financial system.
The CFTC will carefully XEM feedback on the pilot program, potential amendments to existing regulations, and digital asset regulatory frameworks before taking next steps.
