The Commodity Futures Trading Commission (CFTC) of the United States has approved a proposal put forth by the Global Markets Advisory Committee (GMAC) to allow the use of blockchain technology (including distributed ledgers and tokenization) to manage non-cash collateral. This marks progress for the U.S. in the regulation of digital assets. (Background: Trump's Polymarket odds far exceed Kamala Harris's 28%, CFTC calls for legislative regulation to catch gamblers in Taiwan and shut down domains?) (Additional context: dYdX and Wintermute entering the prediction market, CFTC warns of risks in on-chain betting, is Polymarket facing regulation?) Tokenization of assets is rapidly becoming an important bridge between traditional finance and blockchain technology. Recently, the Commodity Futures Trading Commission (CFTC) approved a proposal to allow the use of blockchain technology (including distributed ledgers and tokenization) to manage non-cash collateral in the U.S. derivatives market, opening a new chapter for financial innovation. GMAC proposed a 'tokenized collateral' legal framework. This proposal was brought forward by GMAC, the largest advisory committee under the CFTC, aimed at expanding the use of non-cash collateral through the use of distributed ledger technology. Caroline D. Pham, a commissioner who initiated GMAC, stated: 'Globally, asset tokenization has already seen successful and validated business cases, such as the issuance of digital government bonds in Europe and Asia, institutional repurchase and payment transactions on corporate blockchain platforms with over $1.5 trillion in nominal trading volume, and more efficient collateral and financial management.' Commissioner Pham further pointed out that the proposal for tokenized non-cash collateral put forth by GMAC today represents progress for the U.S. in the regulation of digital assets, marking an important first step for the derivatives market to seize new opportunities while maintaining existing market protections and safeguards. She emphasized: 'Embracing new technology does not mean compromising the integrity of the market.' GMAC's proposal provides a legal and regulatory framework to guide market participants on how to apply existing policies and processes to support distributed ledger technology in managing non-cash collateral, while ensuring that these operations comply with current margin requirements. Blockchain can solve challenges in traditional derivatives trading. GMAC stated that the CFTC has always allowed the use of non-cash assets as collateral under specific conditions and restrictions, to meet regulatory margin requirements for cleared and non-cleared derivatives, thereby reducing credit, market, and liquidity risks. However, various challenges in actual operations have limited the application of non-cash collateral, negatively impacting market efficiency. Utilizing blockchain or other distributed ledger technologies can improve the operational methods of assets that already meet margin requirements, reducing or resolving these challenges without needing to modify the eligibility rules for collateral. Specifically, GMAC noted in a report that blockchain networks can facilitate the instant, round-the-clock transfer of collateral without establishing expensive and complex connections between multiple intermediaries, meaning traders can conduct peer-to-peer transfers, i.e., transferring or pledging assets without going through brokers. DTCC has set a precedent. In fact, as early as September, the Depository Trust & Clearing Corporation (DTCC) completed a pilot program exploring the use of tokenized U.S. Treasury securities as trading collateral, indicating that tokenized assets are gradually gaining attention from U.S. financial institutions. Today, the CFTC's approval further paves the way for the legitimate application of tokenized collateral. This not only accelerates the deep integration of blockchain technology with traditional finance but also indicates that the U.S. is embracing the future of digital assets with a more proactive attitude. Related reports: FTX reaches $12.7 billion settlement with CFTC, will it affect creditor compensation? Jump Crypto reportedly under investigation by CFTC for allegedly manipulating the Terra market? Gary Gensler questions CFTC's ability to regulate cryptocurrency, with staff numbers less than 20% of SEC's. 'CFTC approves tokenization for non-cash collateral in derivatives market, accelerating embrace of blockchain' was first published on BlockTempo (the most influential blockchain news media).