Acting CFTC Chairman Caroline Pham has announced an initiative to allow the use of tokenized collateral, including stablecoins, in U.S. derivatives markets. This initiative aims to modernize collateral management and enhance capital efficiency, thereby stimulating U.S. economic growth. The announcement aligns with ongoing legislative discussions that may shift cryptocurrency oversight from the SEC to the CFTC. Industry leaders from organizations like Ripple, Circle, and Crypto.com support this initiative, highlighting its potential to improve market efficiency and competitiveness. Critics, however, raise concerns about potential risks associated with closer ties between government and crypto firms, pointing to the need for adequate regulatory safeguards. The CFTC is soliciting public feedback on this initiative until October 20, covering topics such as pilot programs and rule amendments related to collateral management.

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