The Commodity Futures Trading Commission (CFTC) is set to organize a CEO Forum with industry firms to discuss the upcoming launch of its digital asset markets pilot program. The focus of the program will be on tokenized non-cash collateral, such as stablecoins.

Participants in the forum are expected to include companies like Circle, Coinbase, Crypto.com, and Ripple. Further details on the forum will be provided once the arrangements are finalized.

CFTC Launches Digital Asset Pilot Program

Commissioner Caroline D. Pham
Caroline Pham, Source: CFTC

"I’m excited to announce this groundbreaking initiative for U.S. digital asset markets," said Acting Chairman Caroline D. Pham.

The initiative stems from a proposal made by Acting Chairman Caroline D. Pham, who has suggested that the pilot program function as a regulatory sandbox for US markets.

The goal of the program is to offer regulatory clarity for the rapidly evolving digital asset markets while ensuring the establishment of appropriate safeguards and regulatory frameworks. The CFTC has a long history of successfully utilizing pilot programs, dating back to the 1990s, to test and refine regulatory approaches.

"The CFTC is committed to responsible innovation. I look forward to engaging with market participants to deliver on the Trump Administration’s promise of ensuring that America leads the way on economic opportunity," Pham added.

Committee Recommends Expanding Non-Cash Collateral

In addition to the pilot program, the CFTC's Global Markets Advisory Committee, which Pham sponsors, released a recommendation last year. The advice came from the Digital Asset Markets Subcommittee, which emphasized the potential to expand the use of non-cash collateral.

The subcommittee specifically highlighted the use of distributed ledger technology as a means to facilitate this expansion. The recommendation reflects its efforts to integrate digital asset innovations into broader market practices while maintaining regulatory oversight.

Source: Finance Magnates