CFTC Initiates Stablecoin-Based Tokenized Collateral for Derivatives Market

The U.S. Commodity Futures Trading Commission (CFTC) is initiating the use of stablecoins as tokenized collateral for margin requirements in the derivatives market.
Acting CFTC chief Caroline Pham is leading this initiative amid delays in confirming Brian Quintenz as chairman.
Pham emphasizes that collateral management is a key application for stablecoins in markets.
This move is part of a broader "crypto sprint" strategy, working alongside SEC Chairman Paul Atkins.
Pham has previously advocated for a regulatory sandbox and a pilot program focused on stablecoin-backed tokenization.
Stablecoins are regulated under the GENIUS Act and are integral to crypto markets and digital finance.
The CFTC is accepting industry input until October 20.
The President's Working Group report urges CFTC to guide the adoption of tokenized non-cash collateral.
Pham suggests these developments could enhance U.S. economic growth by optimizing dollar utilization.