{"id":100754,"date":"2024-11-23T01:33:03","date_gmt":"2024-11-23T05:33:03","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=100754"},"modified":"2024-11-23T01:33:08","modified_gmt":"2024-11-23T05:33:08","slug":"cftc-support-tokenization-of-trading-collateral","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/cftc-support-tokenization-of-trading-collateral\/","title":{"rendered":"CFTC Report Supports Tokenization Of Trading Collateral\u00a0"},"content":{"rendered":"\n

The Global Markets Advisory Committee of the CFTC has given its endorsement to the use of blockchain technology<\/a> to handle trading collateral in United States derivatives markets.<\/p>\n\n\n\n

\"CFTC
CFTC Report Supports Tokenization Of Trading Collateral\u00a0<\/em><\/figcaption><\/figure>\n\n\n\n

According to a report released on November 21, the Global Markets Advisory Committee of the Commodity Futures Trading Commission (CFTC)\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> has endorsed using blockchain technology to administer trading collateral in United States derivatives markets.<\/p>\n\n\n\n

According to the report, blockchain technologies, such as distributed ledgers and tokenization, can resolve long-standing obstacles for conventional derivatives exchanges and broaden the range of assets available for collateral transactions.<\/p>\n\n\n\n

“There have been successful and proven commercial use cases for tokenizing assets worldwide,” stated CFTC Commissioner Caroline D. Pham.<\/p>\n\n\n\n

\n

\u201cNow, we can finally begin to make progress on U.S. regulatory clarity for digital assets.\u201d<\/p>\n<\/blockquote>\n\n\n\n

According to the report, blockchain networks “can facilitate real-time, 24\/7\/365 transfers of the [collateral] asset without costly or complex linkages across multiple intermediaries,” among other benefits.<\/p>\n\n\n\n

“They can also allow peer-to-peer transfers, which means that an individual who owns the asset can transfer or pledge it without involving a broker,” it continued.<\/p>\n\n\n\n

The Depository Trust and Clearing Corporation (DTCC) is conducting a pilot program to settle transactions on blockchain networks. Source: DTCC<\/p>\n\n\n\n

To guarantee transactions until they are finalized, traders frequently must submit collateral, or “margin.”<\/p>\n\n\n\n

The CFTC is responsible for regulating commodity derivatives markets, including exchanges that facilitate trading futures and options, and overseeing US cryptocurrency markets<\/a>.<\/p>\n\n\n\n

How Trump will influence CFTC approach to blockchain<\/strong><\/h3>\n\n\n\n

Donald Trump, the incoming president of the United States, intends to establish the United States as the “world's crypto capital.” According to reports, he is considering appointing a pro-crypto commissioner to serve as the CFTC's director when he assumes office on January 20, 2025.<\/p>\n\n\n\n

The Securities and Exchange Commission<\/a> and CFTC have implemented numerous regulatory actions against industry firms in response to President Joe Biden's aggressive stance on crypto.<\/p>\n\n\n\n

Summer Mersinger, a Republican commissioner of the Consumer Financial Protection Bureau (CFPB), is one of the candidates considered to serve as the agency's chairman. Mersinger has advocated for the CFPB to adopt a more lenient position on cryptocurrency.<\/p>\n\n\n\n

Commissioner Pham has also advocated for crypto, criticizing the CFTC in September for accusing Uniswap, a decentralized exchange, of operating an unregistered derivatives exchange.<\/p>\n\n\n\n

Will SEC adopt blockchain technology?<\/strong><\/h3>\n\n\n\n

The SEC will undergo leadership adjustments in addition to the CFTC. Gary Gensler<\/a>, the SEC Chair, declared on November 21 that he would resign from the agency on January 20, 2025. Gensler is renowned for his uncompromising approach to cryptocurrency regulation.<\/p>\n\n\n\n

There were indications that regulators and trading platforms were beginning to accept tokenized assets as collateral for transactions before the post-election reorganization at the SEC and CFTC.<\/p>\n\n\n\n

The Depository Trust and Clearing Corporation, the central clearinghouse for securities trades in the United States, concluded a September pilot program investigating the use of tokenized US Treasury bills as trading margin.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The Global Markets Advisory Committee of the CFTC has given its endorsement to the use of blockchain technology to handle trading collateral in United States derivatives markets. According to a report released on November 21, the Global Markets Advisory Committee of the Commodity Futures Trading Commission (CFTC) has endorsed using blockchain technology to administer trading […]<\/p>\n","protected":false},"author":59,"featured_media":100587,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[1323,1972,12496,143],"class_list":["post-100754","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-blockchain-technology","tag-cftc","tag-donald-trump-2","tag-sec"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/11\/CFTC-Commissioner-Calls-for-US-Crypto-Policy-Reforms.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/100754","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=100754"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/100754\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/100587"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=100754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=100754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=100754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}