In today’s crypto news, the CFTC has initiated a plan to allow stablecoins in derivatives markets, the SEC is creating an “innovation exemption” to expedite the approval of crypto products, and blockchain payment firm Fnality has raised $136 million from prominent banks to expand its settlement network.
CFTC launches initiative for stablecoins as collateral in derivatives markets
Caroline Pham, the acting chair of the Commodity Futures Trading Commission, announced on Tuesday that the agency has initiated a program to permit tokenized assets, including stablecoins, to be utilized as collateral in derivatives markets.
“The public has indicated that tokenized markets are the future,” Pham stated. “For years, I have asserted that collateral management is the ‘killer app’ for stablecoins in the market.”
This initiative enables stablecoins to be categorized similarly to traditional collateral like cash or US Treasuries in regulated derivatives trading, which Circle Internet Group’s president Heath Tarbert noted would “lower costs, reduce risk, and enhance liquidity across global markets.”
Pham noted that the tokenized asset initiative will build on the CFTC’s Crypto CEO Forum and aligns with the previously announced crypto sprint to implement the recommendations from the President’s Working Group on Digital Asset Markets.
She mentioned that feedback on the initiative will be open until October 20.
US SEC considers ‘innovation exemption’ to expedite digital asset products: Atkins
The US Securities and Exchange Commission is drafting an “innovation exemption” aimed at expediting the approval of digital-asset products by year’s end, SEC Chair Paul Atkins said on Tuesday.
During an interview on Fox Business, Atkins informed anchor Maria Bartiromo that the SEC is planning “rulemaking in the coming months.”
We’re pursuing an innovation exemption — aiming to establish it by year end.
This “innovation exemption” would serve as a regulatory carve-out, offering crypto firms temporary relief from older securities regulations to launch new products with lighter supervision while the SEC formulates tailored regulations.
Atkins addressed the recent approval of the first multi-asset crypto exchange-traded product (ETP) in the US. Launched on Friday, this product allows investors to access Bitcoin (BTC), Ether (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA). Grayscale’s crypto fund was introduced under the SEC’s newly established generic listing standards, which shorten approval timelines for ETFs under Rule 6c-11.
According to Atkins, the new listing standards exemplify “how we can advance. “This strategy is not merely an ad hoc approach. We aim to provide the marketplace with a stable platform to introduce new products.”
Blockchain payment company Fnality secures $136 million in funding round led by major banks
Fnality, a London-based blockchain payments company, has successfully raised $136 million in a Series C funding round supported by some of the largest financial institutions worldwide.
The round was led by Bank of America, Citi, KBC Group, Temasek, Tradeweb, and WisdomTree, with participation from returning investors such as Goldman Sachs, Santander, Barclays, and UBS, as stated in a Tuesday announcement by the firm.
“The closure of our Series C indicates a shared belief that the future of finance necessitates a new foundation,” Fnality CEO Michelle Neal remarked. She noted that the company’s blockchain-based settlement systems offer “24/7 payment capabilities, real-time settlement, and improved liquidity.”
Fnality, which launched its sterling-denominated Fnality Payment System in the UK last year, aims to modernize wholesale payments through a blockchain framework linked to central bank reserves. The new funding will enable Fnality to expand into US dollar and euro markets, pending regulatory approval, as stated.
