ISDA has responded to the US Commodity Futures Trading Commission’s (CFTC) request for input on the Tokenized Collateral and Stablecoin Initiative, offering perspectives on how tokenization and GENIUS Act–compliant payment stablecoins might contribute to more efficient and resilient collateral practices in derivatives markets.
The letter outlines potential opportunities – such as improved collateral mobility and enhanced risk management – while noting the importance of maintaining legal certainty, consistent regulatory treatment, and sound liquidity and credit risk frameworks. ISDA also discusses considerations related to haircuts, custody, derivatives clearing organization acceptance, and cross-border coordination, emphasizing the need for continued analysis and regulatory dialogue as these technologies evolve.
The response reflects ISDA’s intention to support policymakers and market participants as they assess appropriate standards for the responsible use of tokenized assets and stablecoins.
Documents (1) for ISDA Response to CFTC Tokenized Collateral and Stablecoin Initiative
Latest
Episode 59: Reducing Burdens
As she nears the end of her term as chair of the European Securities and Markets Authority, Verena Ross joins The Swap to discuss progress in simplifying and reducing the burden of EU financial regulation, including transaction reporting. Please view...
CDS Market Dynamics: Record 2025
Global credit default swap (CDS) market activity reached a record $41.8 trillion in 2025, surpassing the previous peak of $38.7 trillion in 2022. Index CDS drove the increase, accounting for 93.3% of total activity and reaching a record $39.0 trillion....
ISDA Letter to CFTC on Public Interest Determinations for Event Contracts
On July 27, ISDA submitted a letter to the U.S. Commodity Futures Trading Commission (CFTC) on the CFTC’s proposed rulemaking on public interest determinations for event contracts published in the Federal Register on June 12, 2026. ISDA emphasized the importance...
ISDA Letter to BCBS on RMA Models
On July 24, ISDA wrote to the Basel Committee on Banking Supervision (BCBS) to request guidance on how the proposed Risk Mitigation Accounting (RMA) model under International Financial Reporting Standard (IFRS) 9/IFRS 7 should be treated for prudential regulatory capital...