Commodity Futures Trading Commission (CFTC) Acting Chairman Caroline Pham announced on Sept. 23 that the agency will launch an initiative to enable tokenized collateral in derivatives markets, including stablecoins.
The announcement builds on the CFTC’s February 2025 Crypto CEO Forum and forms part of the agency’s crypto sprint, implementing recommendations from President Donald Trump’s Working Group on Digital Asset Markets report.
Pham described the initiative as advancing “America’s Golden Age of Crypto” through the modernization of blockchain technology in collateral management systems.
The CFTC aims to enhance capital efficiency by enabling market participants to deploy assets more effectively in derivatives trading.
Pham stated:
“The public has spoken: tokenized markets are here, and they are the future. “For years I have said that collateral management is the ‘killer app’ for stablecoins in markets. Today, we are finally moving forward on the work of the CFTC’s Global Markets Advisory Committee from last year.”
The CFTC invited stakeholder feedback, with public comments due Oct. 20.
Industry support
Major crypto firms endorsed the initiative through statements supporting the integration of stablecoin derivatives.
Circle president Heath Tarbert noted that the GENIUS Act creates a regulatory framework that enables payment stablecoins from licensed American companies to serve as collateral in derivatives and traditional financial markets.
Coinbase institutional product VP Greg Tusar characterized stablecoins as “the future of money” and tokenized collateral as the beginning of broader market transformation.
Crypto.com co-founder Kris Marszalek highlighted discussions from the Crypto CEO Forum about delivering innovations that remained outside US markets under previous regulatory approaches.
Ripple SVP Jack McDonald emphasized the importance of establishing clear rules for valuation, custody, and settlement to provide institutional certainty while maintaining appropriate guardrails on reserves and governance.
Non-cash collateral
The initiative implements recommendations from the CFTC’s Global Markets Advisory Committee’s Digital Asset Markets Subcommittee on expanding the use of non-cash collateral via distributed ledger technology.
The President’s Working Group report directs the CFTC to guide the adoption of tokenized non-cash collateral as a regulatory margin.
Pham previously proposed a CFTC pilot program serving as a regulatory sandbox to provide clarity for digital asset markets while ensuring robust guardrails. The agency has operated successful pilot programs since the 1990s.
