The U.S. Commodity Futures Trading Commission (CFTC) is initiating a policy to allow stablecoins as tokenized collateral in the derivatives market. Acting chairman Caroline Pham is driving this initiative, advocating for the potential use of stablecoins in collateral management, which she believes could enhance market efficiency and economic growth. As the CFTC awaits the confirmation of the new chairman, Brian Quintenz, Pham has launched several initiatives in a ‘crypto sprint’ to adapt the regulatory framework to better accommodate cryptocurrency and its growing role in financial contexts. The CFTC is seeking feedback from industry stakeholders until October 20 to shape this policy, highlighting stablecoins' importance in digital finance. The President's Working Group has urged the CFTC to provide guidance on adopting tokenized non-cash collateral as regulatory margin, emphasizing the need for a clear framework as the market evolves.

Source 🔗