The US Commodity Futures Trading Commission is stepping into the crypto space by observing tokenization pilot programs to study the real-world impact of digital assets.
Acting Chairperson Caroline D. Pham confirmed the move during her appearance at the Medici Conference, where she explained the agency’s plan to monitor these programs and build regulatory knowledge.
Pham stated that the goal is to understand how tokenized securities can be integrated with traditional financial systems. By observing pilot schemes, the CFTC aims to develop a deeper understanding of the technology while maintaining its regulatory responsibilities.
CFTC takes observer role in pilot programs
The agency’s involvement will be observational only, allowing it to engage with new financial innovations without active market interference. Pham explained that this strategy enables the CFTC to remain informed while still fulfilling its oversight duties. She emphasized the need to write laws that support future financial frameworks and accommodate tokenized assets.
During an interview with journalist Eleanor Terett at the Medici Conference, Pham reiterated that the CFTC wants direct exposure to tokenization technology. Terett posted on X that the agency plans to observe several industry-led pilots to understand how tokenized assets work and gain hands-on knowledge.
The crypto community responded positively to the news, with many praising the CFTC’s move as a balanced and intelligent step. The Department of Government Efficiency also shared a statement on X, calling the decision smart and highlighting the potential of stablecoins to reduce red tape and modernize financial systems.
Agency plans CEO forum to discuss stablecoin use
In February, the CFTC announced plans to host a CEO forum focused on a pilot for non-cash collateral, including stablecoins. Key players such as Circle, Coinbase, Crypto.com, MoonPay, and Ripple were expected to participate in the discussion. Pham indicated that the agency is committed to innovation and collaboration with market stakeholders.
She previously proposed a regulatory pilot in September 2023, which involved developing rules on registration and risk management with industry input. This pilot would serve as a testing phase before adopting permanent regulations.
Past proposals laid the groundwork for current initiatives
During the past year Pham led the Global Markets Advisory Committee to propose expanding the acceptance of tokenized non-cash collateral at the CFTC. Through this method Pham believes regulators can find better digital asset legislation and develop derivative markets along with retaining investor safeguards.