Acting -President of Commodity Futures Trading Commission (CFTC), Caroline Pham, announced on 23 September that the agency will launch an initiative to make Tokenized collateral in derivatives markets possible, including Stablecoins.
The announcement builds on the CFTC -CRYPTO CEO forum of the CFTC and is part of the Crypto -Sprint of the Bureau and carries out recommendations of President Donald Trump’s working group on the report of digital assets.
Pham described the initiative as promoting “America’s Golden Age of Crypto” by modernizing blockchain technology in collateral management systems.
The CFTC is intended to improve capital efficiency by enabling market participants to use assets more effectively in derivatives trade.
Pham stated:
“The audience has spoken: tokenized markets are here, and they are the future.” For years I said that collateral management is the ‘murderous app’ for stablecoins in markets. Today we are finally going further about the work of the Global Markets Advisory Committee of last year’s CFTC. “
The CFTC invited the feedback from stakeholders, with public comments before 20 October.
Support in the industry
Large Crypto companies endorsed the initiative through statements to support the integration of stablecoin derivatives.
Circle President Heath Tarbert noted that the Genius Act creates a regulatory framework with which payment staboins from recognized American companies can serve as collateral in derivatives and traditional financial markets.
Coinbase Institutional Product VP Greg Tusar characterized Stablecoins as “the future of money” and tokenized collateral as the start of broader market transformation.
Co-founder of Crypto.com Kris Marszalek emphasized discussions of the Crypto CEO forum about the delivery of innovations that remained outside the American markets under previous legal approaches.
Ripple SVP Jack McDonald emphasized the importance of establishing clear rules for valuation, custody and settlement to offer institutional certainty while retaining suitable crash barriers on reserves and board.
Non-quotation
The initiative implements recommendations from the Digital Asset Markets subcommittee of the Global Markets Advisory Committee of the CFTC on expanding the use of non-continuous collateral through distributed ledger technology.
The President’s working group report instructs the CFTC to guide the approval of Tokenized uncontant collateral as a regulatory margin.
Pham previously proposed a CFTC pilot program that served as a regulatory sandbox to provide clarity for digital asset markets and at the same time guarantee robust crash barriers. The agency has operated successful pilot programs since the 1990s.