The US Commodity Futures Trading Commission starts an initiative to allow stableecoins as a tokenized collateral to meet the marginal need of the large derivative market and invites input from the industry on how to bring such a policy online.
In the latest movement against crypto cluttering in the US financial sector, the acting head of CFTC, Caroline Pham, continues to promote politics in the absence of President Donald Trump’s current nominees to be chairman, former Commissioner Brian Quintenz. As the confirmation process for Quintenz remains the mirror in delays and some open conflict, Pham has regularly announced initiatives as part of a “crypto print” and work with chairman of securities and exchange commission Paul Atkins.
“For years, I’ve said security management is ‘Killer App’ for stablecoins in markets,” Pham said in a Tuesday statement. “I am excited to announce the launch of this initiative to work closely with stakeholders to enable the use of tokenized collateral including stableecoins.”
Pham had been pushing since last year to a so-called legislative sandbox for tokenization when she served as commissioner under the former administration, and when she took over as acting chairman, she announced the pursuit of a pilot program on stableecoin-supported tokenization.
StableCOins, newly regulated in accordance with the guidance and creation of the National Innovation for the US StableCoins ACT (Genius) Act, are the dollar-based tokens that are key to plumbing markets and smart-contract-driven digital finances. In a press release from the Agency, which also rounded off comments from Circle, Coinbase and Ripple leaders, CFTC said it will take written ideas until October 20th.
The recent president’s working group report on cryptopolitics called on CFTC to “provide guidance on the adoption of tokenized collateral as a regulatory margin.”
According to Pham, “These market improvements will loosen US economic growth because market participants can set their dollars to work smarter and move on.”
