The Commodity Futures Trading Commission (CFTC) has announced a new initiative to enable the use of tokenised collateral, including stablecoins, in US derivatives markets.
Acting Chair Caroline Pham unveiled the plans in Washington this week, framing the move as part of the agency’s “crypto sprint” to implement recommendations from the President’s Working Group on Digital Asset Markets. The initiative will open a formal consultation process on how tokenised non-cash collateral could be recognised for regulatory margin requirements, with comments due by October 20.
“For years I have said that collateral management is the ‘killer app’ for stablecoins in markets. Today, we are finally moving forward,” Pham said, describing tokenised collateral as a route to modernising US market infrastructure and improving capital efficiency.
The announcement draws on a 2024 recommendation from the CFTC’s Global Markets Advisory Committee to expand the use of non-cash collateral via distributed ledger technology. It also builds on the agency’s February 2025 “Crypto CEO Forum,” where industry leaders and regulators discussed the role of blockchain in derivatives markets.
If implemented, the reforms could allow licensed stablecoins to be used alongside traditional forms of collateral, reducing costs for clearing members and potentially expanding liquidity in markets that underpin the global financial system.
Industry on board
The initiative drew swift praise from some of the sector’s most prominent players, who framed the move as a turning point for stablecoins’ role in global finance.
Circle President Heath Tarbert positioned the development squarely within the framework of the GENIUS Act, the legislation passed earlier this year to create a federal regime for payment stablecoins. “Using trusted stablecoins like USDC as collateral will lower costs, reduce risk, and unlock liquidity across global markets 24/7/365,” he said, describing collateral management as a natural proving ground for the technology.
Others underscored the broader opportunity to reshape derivatives markets. Coinbase executive Greg Tusar called stablecoins “the future of money,” adding that tokenised collateral could “revolutionise our derivatives market” by keeping pace with regulatory innovation in Washington.
Crypto.com’s co-founder Kris Marszalek pointed to the agency’s shift in tone under Pham compared with earlier administrations. The CFTC, he said, was now “partnering with the industry” to deliver innovations that had previously migrated overseas, including the use of non-cash assets such as bitcoin and CRO to meet margin requirements.
For institutions, the focus is on certainty and trust. Ripple’s Jack McDonald said that clear rules on “valuation, custody, and settlement” would give firms the confidence to adopt tokenised collateral at scale, while guardrails on reserves would strengthen resilience.
Tether chief Paolo Ardoino placed the announcement in a global context, arguing that stablecoins are becoming “a core building block of modern finance” by driving faster settlement and deeper liquidity. Recognising them as part of US market infrastructure, he added, would help ensure the country’s continued competitiveness.
Leadership in flux
The initiative comes at a time of unusual political uncertainty at the top of the CFTC. President Donald Trump’s nominee for permanent chair, Brian Quintenz, remains in confirmation limbo after the Senate Agriculture Committee postponed a vote over the summer.
Quintenz, a former CFTC commissioner and veteran crypto advocate, is seen as a potential driver of a more innovation-friendly stance at the agency. But his nomination has been overshadowed by questions over conflicts of interest, stemming from his time as head of crypto policy at Andreessen Horowitz and as a board member of Kalshi, the prediction market platform.
The delay has exposed fault lines in Washington’s approach to digital assets. While the White House has pledged to make the US “the crypto capital of the world,” Quintenz’s critics – including Gemini founders Cameron and Tyler Winklevoss – have questioned his alignment with that vision.
Earlier this year, Quintenz accused the Winklevoss twins of lobbying to stall his confirmation following a dispute over the CFTC’s past enforcement actions against Gemini.
Until the Senate acts, Pham continues to lead the agency in an acting capacity. Her tenure has been marked by a proactive push to demonstrate the CFTC’s role in shaping the digital economy. Alongside the new tokenised collateral initiative, she has floated the idea of a regulatory sandbox for digital asset markets, citing the agency’s history with pilot programmes dating back to the 1990s.
Stakes for payments and stablecoins
The outcome matters for more than just derivatives markets. Stablecoins – now a $300bn global market – are increasingly at the centre of both crypto adoption and payments innovation. Integrating them into the core of US market infrastructure could legitimise their role in cross-border settlement and institutional finance, while setting precedents for how regulators treat blockchain-based payment instruments.
The CFTC’s consultation will address key questions around valuation, custody, and settlement of tokenised collateral. Observers expect debate over how these instruments should be safeguarded and what guardrails are needed to ensure resilience in times of stress.
More broadly, the initiative underscores a shift in the regulatory landscape. While the Federal Reserve and Treasury remain central to payments policy, the CFTC’s growing involvement highlights how cryptoassets are blurring the lines between trading, clearing, and payments infrastructure.
Global comparisons
The US remains behind other jurisdictions in establishing clear rules for stablecoins. The EU’s Markets in Crypto-Assets (MiCA) regime sets out requirements for reserve management, governance, and issuance of fiat-backed tokens. The UK is pursuing a phased regulatory approach that will bring stablecoins under the purview of the Financial Conduct Authority and the Bank of England.
The CFTC’s move may therefore be seen as an attempt to close the gap. Yet whether the US emerges with a coherent national strategy will depend heavily on who leads the Commission in the coming months – Pham with her emphasis on responsible innovation, or Quintenz with his deregulatory instincts and deep ties to the crypto sector.
For now, market participants have until October to make their views known.
