The Commodity Futures Trading Commission’s (CFTC) Global Markets Advisory Committee (GMAC) has recommended broadening the use of distributed ledger technology (DLT) for managing non-cash collateral in the United States. The recommendation, spearheaded by Commissioner Caroline Pham, outlines a framework to integrate blockchain-based systems with existing market practices while adhering to regulatory margin requirements.
The proposal aims to streamline the operational infrastructure for assets already eligible as regulatory collateral, addressing longstanding inefficiencies through the application of DLT. By leveraging blockchain, the Digital Asset Markets Subcommittee intends to eliminate operational bottlenecks without altering the existing rules on collateral eligibility.
Unanimous approval
The recommendation, which faced no objections during its review, is the 14th advanced by the GMAC to the CFTC in the past year. Commissioner Pham hailed the decision as a vital step toward creating regulatory clarity for digital assets, emphasising that innovation can coexist with robust market safeguards.
“This marks a significant first step toward realising these opportunities for our derivatives markets — with exactly the same guardrails and protections in place,” Pham stated.
global inspiration
Pham also referenced successful international use cases of tokenisation as a source of inspiration, expressing optimism about the United States’ potential to align with global advancements in digital asset regulation.
The GMAC’s Digital Asset Markets Subcommittee, which oversees this initiative, also presented updates on its Utility Tokens workstream. The subcommittee’s efforts focus on fostering innovation and growth in the digital economy, with Commissioner Pham noting the importance of maintaining U.S. competitiveness in global markets.
