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.
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.
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.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Bitcoin has pulled back to retest a support line sitting around $74,500, a level that…
With XRP trading around $1.40, holding 1,000 tokens costs approximately $1,400 today. That same stack…
Crypto analyst Michaël van de Poppe's altcoin portfolio sits at $80,000, down from the $160,000…
Brian Armstrong has never been shy about his ambitions, and today the Coinbase CEO dropped…
In the market, various kinds of altcoins have seen diverse price action patterns. Some have…
In the current crypto market everyone's praying for that crazy upside moonshot, but the charts?…
