CFTC launches initiative to enable stablecoins as derivatives market collateral
Commodity Futures Trading Commission (CFTC) Acting Chairman Caroline Pham introduced on Sept. 23 that the company will launch an initiative to enable tokenized collateral in derivatives markets, together with stablecoins.
The announcement builds on the CFTC’s February 2025 Crypto CEO Forum and varieties a part of the company’s crypto dash, implementing suggestions from President Donald Trump’s Working Group on Digital Asset Markets report.
Pham described the initiative as advancing “America’s Golden Age of Crypto” by means of the modernization of blockchain know-how in collateral administration programs.
The CFTC goals to improve capital effectivity by enabling market individuals to deploy belongings extra successfully in derivatives buying and selling.
Pham acknowledged:
“The public has spoken: tokenized markets are right here, and they’re the long run. “For years I’ve stated that collateral administration is the ‘killer app’ for stablecoins in markets. Today, we’re lastly transferring ahead on the work of the CFTC’s Global Markets Advisory Committee from final 12 months.”
The CFTC invited stakeholder suggestions, with public feedback due Oct. 20.
Industry assist
Major crypto companies endorsed the initiative by means of statements supporting the mixing of stablecoin derivatives.
Circle president Heath Tarbert famous that the GENIUS Act creates a regulatory framework that allows fee stablecoins from licensed American firms to serve as collateral in derivatives and conventional monetary markets.
Coinbase institutional product VP Greg Tusar characterised stablecoins as “the way forward for cash” and tokenized collateral as the start of broader market transformation.
Crypto.com co-founder Kris Marszalek highlighted discussions from the Crypto CEO Forum about delivering improvements that remained outdoors US markets beneath earlier regulatory approaches.
Ripple SVP Jack McDonald emphasised the significance of building clear guidelines for valuation, custody, and settlement to present institutional certainty whereas sustaining applicable guardrails on reserves and governance.
Non-cash collateral
The initiative implements suggestions from the CFTC’s Global Markets Advisory Committee’s Digital Asset Markets Subcommittee on increasing using non-cash collateral through distributed ledger know-how.
The President’s Working Group report directs the CFTC to information the adoption of tokenized non-cash collateral as a regulatory margin.
Pham beforehand proposed a CFTC pilot program serving as a regulatory sandbox to present readability for digital asset markets whereas making certain strong guardrails. The company has operated profitable pilot packages because the Nineteen Nineties.
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