CFTC Explores Stablecoins as Collateral in Tokenization Pilot

The U.S. Commodity Futures Trading Commission (CFTC) is set to explore the use of stablecoins as collateral in a tokenization pilot program. Acting Chairman Caroline Pham has announced a digital assets CEO forum to discuss the initiative, with the heads of Coinbase, Ripple, Circle, and other digital assets firms expected to attend.

Pham, who has been acting as the CFTC's chair since late 2022, has previously proposed a regulatory sandbox for tokenization through her advisory committee, the Global Markets Advisory Committee. The idea, based on "responsible innovation," aims to push the use of non-cash collateral through distributed ledger technology.

The forum, which will include a discussion on the pilot program, is expected to take place in the near future, although a specific date and further details have not yet been set.

Pham, a Republican commissioner, has made several changes at the CFTC since taking over from former Chairman Rostin Behnam, a Democrat appointed by former President Joe Biden. These changes include a wide-ranging replacement of senior officials at the agency. In a recent statement, CFTC spokespeople argued that "false allegations" had been made against Pham by "disgruntled individuals" linked to internal misconduct investigations.