The US Commodity Futures Trading Commission is considering allowing tokenized assets, such as stablecoins, to serve as collateral in derivatives markets, a move that crypto leaders endorse.
CFTC acting chair Caroline Pham announced on Tuesday that her agency will “collaborate closely with stakeholders” on this initiative and is welcoming feedback on the use of tokenized collateral in derivatives markets until October 20.
“The public has indicated: tokenized markets are here, and they represent the future. I have consistently stated that collateral management is the ‘killer app’ for stablecoins within markets.”
If realized, stablecoins such as USDC (USDC) and Tether (USDT) would be regarded similarly to conventional collateral like cash or US Treasuries in regulated derivatives trading. Earlier this year, Congress passed laws regulating stablecoins, which are increasingly embraced by financial institutions.
Support from stablecoin and crypto leaders
Circle president Heath Tarbert stated that the GENIUS Act “establishes a landscape where payment stablecoins issued by licensed American firms can be utilized as collateral in derivatives and other traditional financial markets.”
“Employing trusted stablecoins like USDC as collateral will decrease costs, mitigate risks, and unlock liquidity across global markets year-round,” Tarbert elaborated.
President Donald Trump enacted the GENIUS Act in July. It aims to establish clear guidelines for payment stablecoins, although it is still pending final regulations for implementation.
Coinbase chief legal officer Paul Grewal also endorsed the initiative, stating in a post on X that “tokenized collateral and stablecoins can enhance US derivatives markets and position us ahead of global competition.”
Meanwhile, Jack McDonald, senior vice president of stablecoins at Ripple, commented that the proposal marks a significant advancement toward incorporating stablecoins into the “core of regulated financial markets,” thereby enhancing efficiency and transparency in derivatives markets.
“Setting clear standards for valuation, custody, and settlement will provide institutions the confidence they need, while safeguards on reserves and governance will foster trust and resilience.”
Development in progress since early 2025
Pham indicated that the tokenized asset initiative will build on the CFTC’s Crypto CEO Forum and is also part of a previously announced crypto sprint aimed at implementing the recommendations from the President’s Working Group on Digital Asset Markets.
The crypto CEO forum convened in February to solicit insights from crypto industry leaders on an upcoming digital asset pilot program and deliberated on utilizing tokenized non-cash collateral.
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Furthermore, the CFTC’s Global Markets Advisory Committee published a recommendation last year from its Digital Asset Markets Subcommittee to broaden the application of non-cash collateral through distributed ledger technology.
Shifts in the US crypto regulatory environment
Pham’s announcement coincided with Securities and Exchange Commission Chair Paul Atkins stating that his agency is developing an innovation exemption that would serve as a regulatory carve-out, granting crypto firms temporary relief from older securities regulations while the SEC formulates tailored guidelines.
He also unveiled Project Crypto in July, aiming to modernize securities regulations related to crypto and transition US financial markets to on-chain operations.
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