CFTC launches pilot program for tokenized stablecoin collateral

The Commodity Futures Trading Commission (CFTC) launched a pilot program to explore tokenized non-cash collateral, including stablecoins, within regulated derivatives markets, according to a Feb. 7 announcement.

The CEO Forum will engage industry leaders on the launch of its digital asset markets pilot program.

Representatives from Circle, Coinbase, Crypto.com, and Ripple will participate in the forum. The regulator said it would disclose further details about the event once the arrangements are finalized.

Acting Chairman Caroline Pham stated:

“I’m excited to announce this groundbreaking initiative for US digital asset markets. The CFTC is committed to responsible innovation. I look forward to engaging with market participants to deliver on the Trump Administration’s promise of ensuring that America leads the way on economic opportunity.”

The CFTC’s Global Markets Advisory Committee, which Pham sponsors, previously issued a recommendation through its Digital Asset Markets Subcommittee advocating for the expanded use of non-cash collateral via distributed ledger technology.

The pilot program extends Pham’s previous proposal to create a regulatory sandbox under the CFTC’s oversight. She previously argued that a regulatory sandbox would boost liquidity and competition in the US crypto industry.

During a speech in September 2023, Pham also stated that such an environment would foster the growth of compliant digital asset markets and tokenization.

Crypto public roundtables

The regulatory sandbox plans follow the announcement of a series of public roundtables to address market structure and innovation challenges. The discussions will focus on affiliated entities, conflicts of interest, prediction markets, and digital assets.

Pham described technological advancements as a “renaissance in markets” that presents opportunities and risks requiring careful oversight.

Over the coming months, the CFTC will engage with industry leaders, market participants, regulatory experts, and public interest groups. The initiative follows Pham’s previous calls for transparency and public engagement in policymaking.

The regulatory sandbox and public roundtables are part of the CFTC’s push for a comprehensive regulatory framework informed by expert analysis and public input.

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