- The U.S. Commodity Futures Trading Commission (CFTC) is starting a plan to allow stablecoins as tokenized collateral in the derivatives market.
- The CFTC is requesting input from industry stakeholders before finalizing the new policy.
- Acting CFTC chief Caroline Pham is leading the initiative during the absence of a confirmed chairperson.
- The use of stablecoins as collateral follows new regulation under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS) Act.
- Comments on the proposal can be submitted to the CFTC until October 20.
The U.S. Commodity Futures Trading Commission (CFTC) has launched an initiative to allow stablecoins as tokenized collateral for margin in the derivatives market. The agency is inviting industry input to help design and implement this policy.
Interim CFTC head Caroline Pham announced the move, noting that the agency seeks feedback from stakeholders before developing official rules. This comes as the confirmation of former Commissioner Brian Quintenz as chairman remains delayed.
Pham called stablecoins the key application for improving collateral management. In a CFTC statement released Tuesday, she said, “For years I have said that collateral management is the ‘killer app’ for stablecoins in markets. I’m excited to announce the launch of this initiative to work closely with stakeholders to enable the use of tokenized collateral including stablecoins.”
Pham has previously supported a regulatory “Sandbox” to test new policies on tokenization and, upon becoming acting chairman, advanced a pilot program focused on stablecoin-backed tokenization. Stablecoins are digital tokens pegged to the U.S. dollar and play a core role in crypto markets and decentralized finance. They are now regulated under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS) Act.
A recent report from the President’s Working Group recommended that the CFTC provide guidelines for using tokenized, non-cash collateral as regulatory margin. The CFTC’s press release included comments from industry leaders such as Circle, Coinbase, and Ripple. The CFTC will accept written comments on its proposal until October 20.
Pham said these changes would help grow the U.S. economy by allowing market participants to use their capital more efficiently. For additional background, Pham’s push for regulatory flexibility began during her time as commissioner, as shown in a previous CFTC press release.
The CFTC emphasized that this is part of a broader effort to modernize derivatives markets and incorporate digital assets into existing financial systems.
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