The Commodity Futures Trading Commission (CFTC) will commence a digital assets pilot program for certain digital assets, including Bitcoin, ETH, and USDC. The CFTC said these assets will be used as collateral in derivatives markets. The Commission will also pursue guidance on tokenized collateral and seek the withdrawal of “outdated requirements.” The CFTC pointed to the stablecoins legislation, the GENIUS Act, which recently became law.
The initiative was announced by Acting CFTC Chair Caroline D. Pham, who has long been supportive of digital asset innovation.
Pham issued a comment, stating that under her leadership, the CFTC has “led the way forward into America’s Golden Age of Innovation and Crypto.”
During the prior Biden Administration, financial regulators, including the CFTC, were largely hostile toward digital assets, ignoring the inevitability of the transition to digital finance.
Pham said the digital assets pilot program for tokenized collateral would establish clear guardrails that would protect consumers while providing clarity for digital asset firms and regulators.
“The CFTC is also providing regulatory clarity through tokenized collateral guidance for real-world assets like U.S. Treasuries, and withdrawing CFTC requirements that are now outdated under the GENIUS Act. As I’ve said before, embracing responsible innovation ensures that U.S. markets are the world leader, and drives progress that will unleash U.S. economic growth because market participants can safely put their dollars to work smarter and go further,” stated Pham.
Paul Grewal, Coinbase Chief Legal Officer, a frequent commentator on digital asset policy and regulation, welcomed the decision by the CFTC, stating the initiative affirms that “stablecoins and digital assets can make payments faster, cheaper, and reduce risk.”
Heath Tarbert, President of Circle, a stablecoin issuer, said the “CFTC guidance on tokenized collateral is the latest example of Acting Chairman Pham delivering on the promise of President Trump to make the United States the ‘crypto capital of the world.”
Regulatory reform in the US is picking up steam. After four years of ossification and regulation by enforcement, the US is moving forward to enable a financial sector that will be the most impactful since the ’33 Act. While objectives may be clear, the naunce and understanding needed for this migration will require strong support from policymakers and participation from crypto firms. A modern regulatory framework will also provide guidance and leadership for policymakers worldwide.
The CFTC is seeking input from interested individuals regarding the initiative.