Pham described the initiative as advancing “America’s Golden Age of Crypto” through the modernization of blockchain technology in collateral management systems.
The CFTC aims to enhance capital efficiency by enabling market participants to deploy assets more effectively in derivatives trading.
Pham stated:
“The public has spoken: tokenized markets are here, and they are the future. “For years I have said that collateral management is the ‘killer app’ for stablecoins in markets. Today, we are finally moving forward on the work of the CFTC’s Global Markets Advisory Committee from last year.”
The CFTC invited stakeholder feedback, with public comments due Oct. 20.
Major crypto firms endorsed the initiative through statements supporting the integration of stablecoin derivatives.
The initiative implements recommendations from the CFTC’s Global Markets Advisory Committee’s Digital Asset Markets Subcommittee on expanding the use of non-cash collateral via distributed ledger technology.
The President’s Working Group report directs the CFTC to guide the adoption of tokenized non-cash collateral as a regulatory margin.
Pham previously proposed a CFTC pilot program serving as a regulatory sandbox to provide clarity for digital asset markets while ensuring robust guardrails. The agency has operated successful pilot programs since the 1990s.
