The CFTC Launches Tokenization Initiative, Allowing Derivatives Trading to Use Stablecoins as Collateral

BlockBeats News, September 24th, according to The Block, Caroline D. Pham, Acting Chairman of the U.S. Commodity Futures Trading Commission (CFTC), announced the launch of a "Tokenized Collateral" plan, allowing derivatives traders to use stablecoins and other non-cash assets as collateral to enhance market efficiency and transparency. This initiative builds on a pilot project conducted in February this year with Circle, Coinbase, Crypto.com, Ripple, and Moonpay, and it invites industry feedback by October 20th.

This move is part of the CFTC's broader efforts to modernize the capital markets and provide clear guidance to crypto companies. In particular, this initiative continues the agency's so-called "crypto sprint" action, which aims to implement relevant recommendations from the President's Working Group on Financial Markets report.