On 23 September 2025, the United States Commodity Futures Trading Commission (US CFTC) announced a new initiative to enable the use of tokenized collateral, including stablecoins, in derivatives markets. Acting Chairman Caroline D. Pham stated that this initiative forms part of the US CFTC’s crypto sprint to implement recommendations from the President’s Working Group on Digital Asset Markets report. The announcement builds on discussions at the US CFTC’s Crypto CEO Forum held in February 2025 and advances recommendations of the US CFTC’s Global Markets Advisory Committee (GMAC). Public input has been invited by 20 October 2025, with submissions to be published on CFTC.gov.
The initiative seeks to modernise collateral management practices by allowing stablecoins and other tokenized assets to be recognised as regulatory margin in derivatives markets. Acting Chairman Pham described collateral management as the “killer app” for stablecoins and emphasised that this programme will increase capital efficiency while strengthening guardrails. Industry participants, including Circle, Coinbase, Crypto.com, Ripple, and Tether, expressed strong support, highlighting benefits such as lower costs, faster settlement, deeper liquidity, and enhanced U.S. competitiveness in global markets.
Background
- In February 2025: US CFTC convened its Crypto CEO Forum to discuss blockchain innovation and derivatives markets.
- In August 2025: US CFTC announced its crypto sprint to implement the President’s Working Group recommendations (Press Release No. 9104-25).
- In 23 September 2025: Acting Chairman Pham launched the tokenized collateral and stablecoins initiative, inviting public comment.
- 20 October 2025: Deadline for submission of written stakeholder feedback.
Statements by Officials and Industry Stakeholders
Acting Chairman Caroline D. Pham said: “Since January, the [US] CFTC has taken clear action to usher in America’s Golden Age of Crypto … I’m excited to announce the launch of this initiative to work closely with stakeholders to enable the use of tokenized collateral including stablecoins.”
Circle President Heath Tarbert stated: “The GENIUS Act creates a world in which payment stablecoins issued by licensed American companies can be used as collateral in derivatives and other traditional financial markets … Circle applauds Acting Chairman Pham for her leadership.”
Greg Tusar, VP of Coinbase Institutional Product, added: “Stablecoins are the future of money, and tokenized collateral is just the beginning … Now that stablecoins will be regulated under the GENIUS Act, it’s more imperative than ever to ensure that the US remains at the forefront of tokenized innovation.”
Crypto.com CEO Kris Marszalek said: “We are pleased to support the recommendations advanced by the GMAC related to the use of non-cash collateral, including BTC and CRO, to satisfy regulatory margin requirements.”
Ripple’s Jack McDonald, SVP of Stablecoins, explained: “Establishing clear rules for valuation, custody, and settlement will give institutions the certainty they need … tokenized collateral can drive greater efficiency and transparency in derivatives markets.”
Tether CEO Paolo Ardoino noted: “Stablecoins, now a nearly $300 billion global market, are becoming a core building block of modern finance … Tether welcomes the opportunity to share our experience in this sector.”
The Decision and Objectives
The initiative is part of the US CFTC’s wider adoption of distributed ledger technology in derivatives markets, aligning with the GMAC Digital Asset Markets Subcommittee recommendation on non-cash collateral. The US CFTC has indicated that pilot programmes, regulatory sandboxes, and possible amendments to collateral management rules may follow.
By framing stablecoins as acceptable collateral under the United States Securities Exchange Act and CEA margin requirements, the US CFTC is signalling that tokenized assets can function within the core of regulated derivatives markets, provided that valuation, custody, reserve, and governance standards are observed.
United States CFTC Acting Chairman Pham on Collateral Management
“For years I have said that collateral management is the ‘killer app’ for stablecoins in markets. Today, we are finally moving forward … The [US] CFTC continues to move full speed ahead at the cutting edge of responsible innovation.”
Circle Perspective on the GENIUS Act
“Using trusted stablecoins like USDC as collateral will lower costs, reduce risk, and unlock liquidity across global markets 24/7/365.”
Ripple Perspective on Institutional Adoption
“Establishing clear rules for valuation, custody, and settlement will give institutions the certainty they need … while guardrails on reserves and governance will build trust and resilience.”
(Source: https://www.cftc.gov/PressRoom/PressReleases/9130-25)
