The US Commodity Futures Trading Commission aims to make iconic assets, including Stablecoins, available for use in the derivatives market as collateral for movements supported by crypto executives.
CFTC’s acting chairman Caroline Pham said Tuesday that her agency will “work closely with stakeholders” on the scheme, encouraging feedback on using the derivative market for tokenized collateral until October 20th.
“The public spoke. The tokenized market is here, and they are the future. For years, I’ve said that collateral management is a stable “killer app” in the market. ”
When implemented, stubcoins like USDC (USDC) and Tether (USDT) are treated similarly to cash and traditional collateral such as US Treasury in regulated derivative transactions. Congress passed a law earlier this year regulating stubcoins, which have seen adoptions grow among financial institutions.
Stablecoin, Crypto Heavyweights Back Move
Crypto executives at Stablecoin Issuers Circle Internet Group, Tether, Ripple Labs, Crypto Exchanges Coinbase and Crypto.com have all been marking approval for the CFTC move.
Circle President Heath Tarbert said the Genius Act “creates a world where the stability of payments issued by licensed American companies can be used as collateral for derivatives and other traditional financial markets.”
“Using reliable stubcoins like USDC as collateral reduces costs, reduces risk and removes liquidity across the global market 24/7,” added Tarbert.
US President Donald Trump signed the Genius Act in July. It is aimed at establishing clear rules for payment stability, but awaiting final regulations before implementation.
Coinbase Chief Legal Officer Paul Grewal also supported the initiative, saying in an X post Tuesday, “Tokenized collateral and Stablecoins are unlocking the US derivatives market and ahead of global competition.”
Meanwhile, Jack McDonald, senior vice president of Stablecoins at Ripple, said the CFTC plan is a critical step to consolidating Stablecoins into the “center of a regulated financial market” and improving efficiency and transparency in the derivatives market.
“Establishing clear rules on assessment, custody and settlements gives the agency the certainty they need, but the reserves and governance guardrails build trust and resilience.”
Work initiatives since early 2025
Pham said the tokenized asset initiative was built on the CFTC Crypto CEO Forum and is part of the previously announced Crypto Sprint, which will apply the President’s Working Group to recommendations for the digital asset market.
The Crypto CEO Forum, held in February, called on Crypto Industry CEOs to provide their opinions on the upcoming Digital Asset Pilot Program, discussing the use of tokenized, non-cash collateral.
Related: CFTC added Crypto leaders to the digital asset group and tapped JPMorgan Exec as co-chair
CFTC’s Global Markets Advisory Committee last year issued recommendations from the Digital Asset Markets subcommittee on expanding the use of non-cash collateral through distributed ledger technology.
Changes in the US cryptocurrency regulations
The Pham announcement will take place on the same day. Exchange Committee Chairman Paul Atkins said his agency is working on an innovation exemption that serves as a regulatory sculpture, giving Crypto companies temporary relief from old securities regulations while the SEC is developing customized regulations.
He also announced Project Crypto in July. It hopes to modernize securities rules and regulations regarding Crypto and move US financial markets on-chain.
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