CFTC Launches Initiative to Allow Tokenized Collateral in Derivatives Markets

The Commodity Futures Trading Commission will launch a new initiative allowing tokenized collateral such as stablecoins to be used in derivatives markets, Acting Chairman Caroline D. Pham announced Tuesday.

Pham said the move is intended to modernize collateral management, drive capital efficiency and accelerate U.S. economic growth.

“Since January, the CFTC has taken clear action to usher in America’s Golden Age of Crypto,” Pham said in a statement. “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,” she added.

The CFTC’s crypto push

The announcement marks the latest step in the CFTC’s crypto sprint. The push comes as U.S. lawmakers weigh the CLARITY Act, legislation that, among other things, would define jurisdictional lines between the CFTC and the Securities and Exchange Commission (SEC) when it comes to crypto.

Under the bill, passed in the House in July, most cryptocurrencies would be classified as commodities, granting the CFTC broader oversight of the industry.

The agency is not alone in its bid to adapt to shifting markets. In September, SEC Chair Paul Atkins and Pham issued a joint statement proposing a “24/7 markets” policy to align traditional financial exchanges with the round-the-clock activity of crypto, gold and foreign exchange. The two regulators plan to discuss the proposal further at a roundtable later this month.

Deepening ties

Crypto firms, for their part, have embraced the CFTC’s latest move, with statements shared by the CFTC from industry leaders highlighting the increasingly close ties between public officials and the crypto industry.

Kris Marszalek, CEO of Crypto.com, said the initiative follows industry calls to bring innovation back to U.S. markets.

Jack McDonald, SVP of Stablecoins at Ripple, added the effort “will give institutions the certainty they need, while guardrails on reserves and governance will build trust and resilience.”

Heath Tarbert, president of Circle, called tokenized collateral a step toward lowering costs, reducing risk and unlocking liquidity in global markets.

But while advocates point to increased efficiency and innovation, critics warn the coziness between the Trump administration and the crypto industry could soften safeguards just as Washington grapples with defining the future of digital asset oversight. Last month, U.S. Senator Elizabeth Warren (D-MA) argued that the crypto industry should not be allowed to “write its own legislation,” and recently raised concerns over the Trump administration’s “interactions with, and relationship to” crypto exchange Binance.

The CFTC is inviting public comment on its plan through October 20. Topics for feedback include potential pilot programs, rule amendments and other issues related to collateral management.