CFTC Launches Initiative To Allow Stablecoins As Collateral

Key Highlights CFTC enables stablecoins to be used as collateral in ￰0￱ Circle Coinbase Tether and Ripple applaud regulatory steps Tokenized finance may increase efficiency

liquidity and transparency Tokenized Collateral Set to Transform Financial Markets The ￰1￱ Futures Trading Commission (CFTC) has announced a groundbreaking initiative permitting the use of tokenized collateral specifically stablecoins in derivatives ￰2￱ CFTC Chair Caroline Pham emphasized: “Since January

the CFTC has taken clear action to usher in America's Golden Age of Crypto.” Pham highlighted that blockchain and tokenization could radically improve collateral management and capital efficiency stating: “The public has spoken: tokenized markets are here and they are the future.” Key market participants have voiced strong ￰3￱ President Heath Thurber praised the GENIUS Act which permits stablecoins issued by licensed ￰4￱ to serve as collateral in both derivatives and traditional markets: “Circle applauds Acting Chairwoman Pham for her leadership on this issue.” US President Donald Trump signed the first-ever ￰5￱ Innovation and Guidance Act (GENIUS)

seeking to provide legal clarity for the cryptocurrency ￰6￱ Leaders Applaud Regulatory Steps Coinbase Vice President Greg Tusar described stablecoins as ”the future of money,” noting that the initiative positions the ￰7￱ lead in tokenization ￰8￱ CEO Chris Marszalek highlighted past CFTC-industry cooperation stating: “We want to thank Acting Chairwoman Pham for her leadership and for continuing to deliver on her promise to usher in a golden era of cryptocurrency in America.” Ripple Senior Vice President Jack McDonald added that integrating stablecoins into financial markets will: “increase the efficiency and transparency of derivatives markets.” Tether CEO Paolo Ardoino emphasized: “Stablecoins

now a nearly $300 billion global market are becoming a core building block of modern finance by enabling faster settlement deeper liquidity and greater market resilience.” According to a Messari report

the stablecoin sector’s market capitalization has surpassed $250 billion with ￰9￱ Secretary Scott Bessent projecting growth to over $2 trillion in the coming ￰10￱ Consultation and Future Outlook The CFTC invited market participants and the public to submit suggestions and comments by October ￰11￱ initiative follows recommendations from the Global Market Advisory Committee and is part of the Crypto Sprint designed to implement proposals from the Presidential Working Group on the Digital Asset ￰12￱ move represents a pivotal step toward a tokenized future where stablecoins play a key role in modern financial infrastructure

enhancing efficiency transparency and liquidity.