The US Commodity Futures Trading Commission is seeking to permit tokenized assets, including stablecoins, for use as collateral in derivatives markets, a move backed by crypto industry leaders.
CFTC acting chair Caroline Pham stated on Tuesday that her agency will “collaborate closely with stakeholders” regarding the initiative and is inviting input on the use of tokenized collateral in derivatives markets until Oct. 20.
“The public has expressed its views: tokenized markets are here and represent the future. For years, I have maintained that collateral management is the ‘killer app’ for stablecoins in markets.”
If enacted, stablecoins like USDC (USDC) and Tether (USDT) would be recognized similarly to conventional collateral such as cash or US Treasurys in regulated derivatives trading. Earlier this year, Congress passed legislation regulating stablecoins, which have gained traction among financial institutions.
Support from stablecoin and crypto leaders
Circle president Heath Tarbert remarked that the GENIUS Act “creates an environment where payment stablecoins from licensed American companies can be utilized as collateral in derivatives and other traditional financial markets.”
“Employing trusted stablecoins like USDC as collateral will decrease costs, mitigate risk, and unleash liquidity across global markets 24/7/365,” added Tarbert.
In July, US President Donald Trump signed the GENIUS Act into law, aiming to establish clear guidelines for payment stablecoins, although implementation still awaits final regulations.
Coinbase chief legal officer Paul Grewal also expressed support, stating in a X post on Tuesday that “tokenized collateral and stablecoins can unlock US derivatives markets and position us ahead of global rivals.”
Jack McDonald, senior vice president of stablecoins at Ripple, stated that the initiative is a critical step toward embedding stablecoins into the “core of regulated financial markets,” enhancing efficiency and transparency in derivatives markets.
“Establishing precise rules for valuation, custody, and settlement will provide institutions with the assurance they require, while guardrails on reserves and governance will foster trust and resilience.”
Plans in progress since early 2025
Pham indicated that the tokenized asset initiative will expand on the CFTC’s Crypto CEO Forum and is part of the previously announced crypto sprint to implement the President’s Working Group on Digital Asset Markets recommendations.
The crypto CEO forum convened in February, urging crypto industry leaders to contribute feedback on an upcoming digital asset pilot program and focusing on the use of tokenized non-cash collateral.
Related: CFTC adds crypto leaders to digital asset group, JPMorgan exec tapped for co-chair
The CFTC’s Global Markets Advisory Committee had also released a recommendation last year from its Digital Asset Markets Subcommittee aimed at broadening the adoption of non-cash collateral through distributed ledger technology.
Changing US crypto regulatory environment
Pham’s announcement coincides with Securities and Exchange Commission Chair Paul Atkins’ statement that his agency is developing an innovation exemption that would serve as a regulatory carve-out, granting crypto firms temporary relief from outdated securities regulations while the SEC formulates tailored rules.
In July, he also introduced Project Crypto, which aims to modernize securities rules and regulations related to crypto, facilitating the transition of America’s financial markets to onchain.
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