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The Commodity Futures Trading Commission (CFTC) is rolling out a new initiative to explore the use of tokenized collateral, including stablecoins, in derivatives markets, Acting Chairman Caroline D. Pham announced Tuesday.In a statement, the agency said its Global Markets Advisory Committee (GMAC), led by Pham, had last year recommended that regulators adopt “the use of non-cash collateral through distributed ledger technology.”  Tokenized collateral can make contracts like futures and swaps more ‘efficient’. Ripple’s Senior Vice President of Stablecoins, Jack McDonald, says the tokenization of real-world assets, even future cash flows, is a trend that is rapidly advancing in financial technology.” Collateral is also used as security for traders’ obligations on derivatives contracts, mitigating the risk of default. CFTC pushes tokenized collateral to modernize derivatives markets The initiative is part of the CFTC’s great push to modernize capital markets and provide clear guidance for crypto firms. Specifically, it builds on the agency’s so-called “crypto sprint” to implement the President’s Working Group on Digital Asset Markets report recommendations.  Just recently, Congress passed the first crypto-specific bill to regulate stablecoins under the GENIUS Act. Federal regulators, including the Treasury Department, are still working out how to implement that law best. Likewise, the CFTC invites industry stakeholders to submit suggestions “on using tokenized collateral” in derivatives markets.  Written comments are due by Oct. 20. Pham has also suggested launching a digital asset regulatory sandbox in the U.S. to test new market structures. “The public has spoken: tokenized markets are here, and they are the future,” Pham said. She added that the CFTC is pressing forward at the forefront of responsible innovation, and she values the support of their industry partners. The CFTC’s press release notably included statements from Circle, Coinbase, Crypto.com, and Ripple executives. In February, the agency outlined plans for a non-cash collateral…

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Filed under: News - @ September 24, 2025 12:21 am