CFTC unveils plans to allow stablecoins as tokenized collateral in derivatives markets

• The CFTC announced that it will launch an initiative to allow stablecoins as part of tokenized collateral in derivatives markets.
• The move aims to accelerate the integration of digital assets in public markets, in line with recent regulatory easing in the crypto sector.
• The agency is requesting public comments on the initiative, with a deadline of October 20.

US Commodity Futures Trading Commission (CFTC) Acting Chair Caroline D. Pham announced on Tuesday that the agency will launch an initiative to enable tokenized collateral in derivatives markets, including stablecoins.

CFTC set to include stablecoins as tokenized collateral in derivatives markets

The US CFTC is set to introduce an initiative that would allow stablecoins to serve as tokenized collateral for derivatives markets, according to a statement on Tuesday.

Acting CFTC Chair Caroline Pham described the initiative as part of the commission's plan to modernize derivatives trading through the adoption of blockchain technology and tokenized assets. It also aims to accelerate the integration of digital assets in public markets, following the recent positive crypto regulatory environment in the US.

The announcement also follows the agency's Crypto CEO Forum held in February and implements recommendations from President Donald Trump's Working Group on Digital Asset Markets report.

"At our historic Crypto CEO Forum, we discussed how innovation and blockchain technology will drive progress in derivatives markets, especially for modernization of collateral management and greater capital efficiency," said Pham.

The President's Working Group's report ordered the CFTC to issue guidance on using tokenized non-cash collateral as regulatory margin through its Global Markets Advisory Committee (GMAC) and Digital Asset Markets Subcommittee (DAMS).

The initiative also follows the CFTC's collaboration with the Securities & Exchange Commission (SEC), aimed at regulatory harmonization for digital asset markets. CFTC Chair Pham and SEC Chair Paul Atkins released a joint statement earlier in the month, emphasizing the need for clearer digital asset rules. This builds on the SEC's Project Crypto initiative and the CFTC's Crypto Sprint.

Stablecoins have emerged as a key priority under the new leadership of both agencies, following US lawmakers' passage of the GENIUS Act, which serves as the first-ever stablecoin law.

The CFTC is seeking public comments on the new initiative, with a deadline of October 20. The comments may address the GMAC 2024 recommendation, possible pilot programs, and regulatory amendments linked to the President's Working Group report.