U.S. CFTC Unveils Initiative to Enable Tokenized Collateral With Focus on Stablecoins In Derivatives Markets

The Commodity Futures Trading Commission (CFTC) has announced a new initiative focused on the mainstream adoption of stablecoins and blockchain technology. The acting CFTC chair Caroline Pham announced that the agency will unveil a new initiative to enhance the use of tokenized collaterals, led by stablecoins, in derivatives.

According to the announcement, the new CFTC initiative is part of the agency’s crypto sprint, which is focused on implementing the recommendations in President Donald Trump’s Working Group on Digital Asset Markets report. Meanwhile, the CFTC has invited the public to comment by October 20.

“At our historic Crypto CEO Forum, we discussed how innovation and blockchain technology will drive progress in derivatives markets, especially for the modernization of collateral management and greater capital efficiency. These market improvements will unleash U.S. economic growth because market participants can put their dollars to work smarter and go further,” Pham noted.

CFTC Builds on Genius Act to Enhance Stablecoins Adoption

The CFTC has been building on the recently enacted GENIUS Act to enhance the mainstream adoption of stablecoins. Moreover, the Trump administration has been keen on tapping into stablecoins to sell treasury bonds amid their reduced demand from previous top investors led by China and Japan.

In order to implement the new initiative, the CFTC plans to collaborate with top crypto firms. For instance, CFTC announced that it is working with Ripple Labs, Crypto.com, Coinbase Global Inc. (NASDAQ: COIN), and Circle. 

“I’m excited to announce the launch of this initiative to work closely with stakeholders to enable the use of tokenized collateral including stablecoins. The CFTC continues to move full speed ahead at the cutting edge of responsible innovation, and I appreciate the support of our industry partners,” Pham noted.

Expected Market Impact

The stablecoins market has grown to nearly $300 billion in net valuation, heavily influenced by the favorable regulations in the United States. The CFTC’s initiative to enable the use of stablecoins in the derivative market will further encourage the mainstream adoption.