The U.S. Commodity Futures Trading Commission (CFTC), under Acting Chairman Caroline Pham, is advancing a pilot program to explore stablecoin-backed tokenization. This initiative aims to modernise market infrastructure by leveraging distributed ledger technology (DLT) for non-cash collateral.

Pham, a Republican commissioner and Trump appointee, is leading the charge after her earlier proposal for a “regulatory sandbox” on tokenization was overlooked by previous leadership. The pilot program will be a key topic at an upcoming CEO summit featuring top digital asset firms, including Coinbase, Ripple, Circle, and Crypto.com.

A Step Towards “Responsible Innovation”

In a statement, Pham called the initiative “groundbreaking” and aligned it with the Trump administration’s commitment to ensuring the U.S. remains a leader in economic opportunity. The effort seeks to integrate blockchain technology into financial markets without altering existing collateral eligibility rules.

The proposal, originally presented in November by Pham’s Global Markets Advisory Committee, highlighted how DLT could enhance operational efficiency and risk management. The committee suggested that tokenization could streamline processes while maintaining regulatory safeguards.

Industry Leaders Back the Move

The initiative has gained support from key figures in the crypto industry. MoonPay CEO Ivan Soto-Wright praised Pham’s balanced and forward-thinking approach, stating that the forum provides an opportunity for meaningful dialogue on the future of digital assets.

The pilot is expected to allow market participants to test new methods of using stablecoins as collateral while adhering to existing regulatory frameworks.

Leadership Shake-Up at the CFTC

Pham’s leadership has brought significant changes to the CFTC, including a reshuffle of senior officials. A recent controversy involving a former human-resource chief led to a public statement from the regulator refuting “false allegations” tied to internal misconduct investigations.

While the date for the CEO summit remains unannounced, the pilot program signals a shift in the CFTC’s approach toward digital asset regulation. With growing interest in tokenization, the initiative could set the stage for broader adoption of blockchain-based financial solutions in the U.S. markets.