The US Commodity Futures Trading Commission is aiming to permit tokenized assets, including stablecoins, as collateral in derivatives markets, a move that has received backing from crypto leaders.
CFTC acting chair Caroline Pham announced on Tuesday that the agency will collaborate closely with stakeholders on this initiative, inviting feedback on the use of tokenized collateral in derivatives markets until Oct. 20.
“The public has expressed its view: tokenized markets are here, and they are the future. For years, I have maintained that collateral management is the ‘killer app’ for stablecoins in markets.”
If this is put into effect, stablecoins such as USDC (USDC) and Tether (USDT) would be recognized similarly to traditional forms of collateral like cash or US Treasurys in regulated derivatives trading. Earlier this year, Congress enacted laws governing stablecoins, which have gained popularity among financial institutions.
Stablecoin, crypto giants support initiative
Circle president Heath Tarbert remarked that the GENIUS Act “creates a scenario where payment stablecoins issued by licensed American companies can serve as collateral in derivatives and other traditional financial sectors.”
“Utilizing trusted stablecoins like USDC as collateral will reduce costs, mitigate risk, and enhance liquidity across global markets around the clock,” Tarbert further noted.
US President Donald Trump enacted the GENIUS Act in July, aimed at establishing clear guidelines for payment stablecoins, though final regulations are still pending before its implementation.
Coinbase chief legal officer Paul Grewal also endorsed the initiative, stating in a post on X that “tokenized collateral and stablecoins can unlock US derivatives markets and enhance our competitive edge globally.”
Additionally, Jack McDonald, senior vice president of stablecoins at Ripple, stated that the CFTC’s proposal is a vital move toward incorporating stablecoins into the “core of regulated financial markets,” promoting greater efficiency and transparency within derivatives markets.
“Establishing clear guidelines for valuation, custody, and settlement will provide institutions the assurances they require, while safeguards on reserves and governance will foster trust and resilience.”
Initiative in development since early 2025
Pham indicated that the tokenized asset plan will extend the CFTC’s Crypto CEO Forum and is also part of the previously announced crypto sprint aimed at implementing the President’s Working Group on Digital Asset Markets recommendations.
The crypto CEO forum held in February urged crypto industry leaders to contribute insights on a forthcoming digital asset pilot program and deliberated on utilizing tokenized non-cash collateral.
Related: CFTC incorporates crypto leaders into digital asset group, with JPMorgan executive appointed as co-chair
The CFTC’s Global Markets Advisory Committee last year published a recommendation from its Digital Asset Markets Subcommittee focused on broadening the use of non-cash collateral via distributed ledger technology.
US crypto regulatory landscape evolving
Pham’s announcement coincides with Securities and Exchange Commission Chair Paul Atkins’ statement that his agency is developing an innovation exemption, which would serve as a regulatory carve-out, granting crypto companies temporary relief from older securities regulations while the SEC works on tailored rules.
He also introduced Project Crypto in July, which aims to modernize the securities regulations related to crypto and transition America’s financial markets onchain.
Magazine: US risks being ‘front run’ on Bitcoin reserves by other nations — Samson Mow
