At the center of the plan is tokenized collateral, a concept that would allow stablecoins and other digital assets to be pledged against futures or swaps contracts. Advocates say this would cut costs, reduce delays, and add visibility to one of the most critical safeguards in financial markets. “Tokenized markets are here, and they are the future,” Acting Chair Caroline Pham said as she unveiled the initiative.

The idea has been percolating inside the agency for over a year. The CFTC’s Global Markets Advisory Committee previously called for experimenting with non-cash collateral on distributed ledgers, and earlier this year the commission revealed a pilot that included Circle, Coinbase, Crypto.com, Ripple, and MoonPay. Tuesday’s announcement effectively puts that work on a formal track, with the regulator now seeking written feedback from the public before October 20.

The timing is notable. Over the summer, Congress passed the GENIUS Act, the first federal law aimed specifically at stablecoins, leaving regulators to define how the rules will apply in practice. For the CFTC, expanding collateral options dovetails with its broader push to update capital markets infrastructure and provide clearer guidance for crypto firms.

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Industry leaders have wasted no time weighing in. Ripple’s stablecoin lead Jack McDonald argued tokenized collateral could bring “efficiency and transparency” to derivatives markets. Circle and Coinbase executives offered similar backing, framing the effort as part of a larger shift toward institutional adoption of blockchain tools.

Pham has also floated the idea of a U.S. regulatory sandbox for digital assets, suggesting the commission wants to test new models without locking itself into rigid frameworks too soon. With stablecoin regulation now law, the tokenized collateral debate could become one of the first major proving grounds for how policymakers translate legislation into practical market reforms.

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