WASHINGTON — Commodity Futures Trading Commission Acting Chairman Caroline D. Pham announced today the CFTC will launch an initiative for the use of tokenized collateral including stablecoins in derivatives markets. This initiative builds on the CFTC’s successful Crypto CEO Forum held in February 2025, and is part of the CFTC’s crypto sprint to implement the recommendations in the President’s Working Group on Digital Asset Markets report. Acting Chairman Pham announced CFTC’s crypto sprint on August 1 [See CFTC Press Release No.9104-25].
“Since January, the CFTC has taken clear action to usher in America’s Golden Age of Crypto,” said Acting Chairman Pham. “At our historic Crypto CEO Forum, we discussed how innovation and blockchain technology will drive progress in derivatives markets, especially for 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.
“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. 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,” Acting Chairman Pham continued.
“The GENIUS Act creates a world in which payment stablecoins issued by licensed American companies can be used as collateral in derivatives and other traditional financial markets,” said Circle President Heath Tarbert. “Using trusted stablecoins like USDC as collateral will lower costs, reduce risk, and unlock liquidity across global markets 24/7/365. Circle applauds Acting Chairman Pham for her leadership on this issue and the CFTC for its commitment to innovation, well-functioning markets, and sound regulation.”
“Stablecoins are the future of money, and tokenized collateral is just the beginning,” said Greg Tusar, VP of Coinbase Institutional Product. “We commend Acting Chair Pham for recognizing the power of stablecoins to revolutionize our derivatives market, keeping pace with the regulatory innovation coming from the Administration and Congress. Now that stablecoins will be regulated under the GENIUS Act, it’s more imperative than ever to ensure that the US remains at the forefront of tokenized innovation.”
“During Acting Chairman Pham’s Crypto CEO Forum earlier this year, we discussed how the CFTC can partner with the industry to deliver on the innovations and products that have remained outside the United States, given the prior Administration’s approach,” said Kris Marszalek, Co-Founder and CEO of Crypto.com. “We are pleased to support the recommendations advanced by the GMAC related to the use of non-cash collateral, including BTC and CRO, to satisfy regulatory margin requirements. We want to thank Acting Chairman Pham for her leadership and for continuing her pledge to usher in America’s Golden Age of Crypto through innovation at the CFTC.”
“This CFTC initiative is an important step toward integrating stablecoins into the heart of regulated financial markets,” said Jack McDonald, SVP of Stablecoins at Ripple. “Establishing clear rules for valuation, custody, and settlement will give institutions the certainty they need, while guardrails on reserves and governance will build trust and resilience. At Ripple, we believe tokenized collateral can drive greater efficiency and transparency in derivatives markets, strengthening U.S. leadership in financial innovation.”
The CFTC’s Global Markets Advisory Committee (GMAC), sponsored by Acting Chairman Pham, released a recommendation last year by its Digital Asset Markets Subcommittee (DAMS) on expanding the use of non-cash collateral through distributed ledger technology. The President’s Working Group report directs the CFTC to “provide guidance on the adoption of tokenized non-cash collateral as regulatory margin to implement the CFTC’s GMAC DAMS recommendation.”
Acting Chairman Pham has previously proposed a CFTC pilot program as a U.S. regulatory sandbox to provide regulatory clarity for digital asset markets and ensure that robust guardrails are in place. The CFTC has had success with pilot programs dating back to the 1990s.
The CFTC invites interested stakeholders to submit feedback and suggestions on the use of tokenized collateral including stablecoins in derivatives markets. Subject areas include the CFTC’s GMAC 2024 recommendation; CFTC observer status on industry efforts; potential digital asset markets pilot programs; amendments to CFTC regulations in connection with the President’s Working Group report recommendations regarding collateral management (pages 52-53), and other related issues.
Members of the public may provide written input by October 20 by submitting a comment on the CFTC website. Submissions will be published on CFTC.gov. For more information, see How to Submit a Comment.