- CFTC may allow stablecoins like USDC and Tether as collateral in derivatives markets.
- The proposal gains industry support, citing the GENIUS Act and tokenized collateral efficiency.
- Public comments open until Oct. 20 as CFTC aligns digital assets with traditional finance.
The U.S. Commodity Futures Trading Commission is considering a plan to allow tokenized assets, including stablecoins, as collateral in regulated derivatives markets. The proposal, now open for public comment until October 20, could integrate digital assets like USDC and Tether with traditional collateral such as cash and U.S. Treasurys.
CFTC Moves Toward Stablecoin Collateral in Derivatives
The U.S. Commodity Futures Trading Commission has put forward a plan that may allow tokenized assets, including stablecoins, to serve as collateral in regulated derivatives trading. This proposal is open for public feedback until October 20.
Acting Chair Caroline Pham confirmed the step during a Tuesday announcement, stressing the growing role of tokenized markets in modern finance. Pham said, “For years I have said that collateral management is the killer app for stablecoins in markets.”
She added that the changes could help the U.S. economy by letting participants manage their dollars more efficiently. The plan would place stablecoins like USDC and Tether alongside cash and U.S. Treasurys in collateral frameworks. This marks a move to align digital assets with traditional finance.
Industry Support and Broader Regulatory Context
The initiative has received backing from leading crypto firms. Circle president Heath Tarbert said the GENIUS Act, signed in July, created a foundation for stablecoins issued by licensed U.S. companies to function as collateral. Coinbase chief legal officer Paul Grewal stated that tokenized collateral could help the U.S. stay ahead in global markets.
Ripple’s Jack McDonald described the plan as a step toward integrating stablecoins into regulated financial systems. The CFTC’s initiative builds on previous engagement with the industry, including the Crypto CEO Forum and the Global Markets Advisory Committee. These meetings explored digital asset pilot programs and tokenized collateral use cases.
The proposal follows recommendations from the President’s Working Group on Digital Asset Markets. It also builds on the GENIUS Act, which sets rules for payment stablecoins but awaits final regulations. By seeking public comments and preparing pilot programs, the agency is aiming to create a pathway for digital assets in collateral systems.
