CFTC Moves to Integrate Stablecoins into Derivatives Markets
The US Commodity Futures Trading Commission (CFTC) is exploring the use of stablecoins and tokenized assets as collateral in derivatives trading. Major crypto executives have voiced support for this initiative.
CFTC Chair Caroline Pham said the agency will collaborate with industry stakeholders and is accepting public comments on tokenized collateral until October 20, 2025.
“The public has spoken: tokenized markets are here and they are the future,” said Pham, noting that collateral management is the “killer app” for stablecoins in regulated finance.
Allowing stablecoins such as USDC and Tether to serve as collateral could reshape the derivatives market, putting them on par with cash or US Treasurys.
Leading Crypto Firms Back the Initiative
Executives from Circle, Tether, Ripple Labs, Coinbase, and Crypto.com support the CFTC’s plan.
- Heath Tarbert, President of Circle, stated that the GENIUS Act enables licensed US stablecoins to serve as collateral in derivatives and traditional markets.
- Paul Grewal of Coinbase emphasized that tokenized collateral can help the US stay competitive.
- Jack McDonald of Ripple noted that regulated derivatives markets could become more efficient and transparent with clear rules for stablecoins.
Also Read : DBS Collaborates with Ripple and Templeton on Tokenized Trading and Lending on XRPL
Background: GENIUS Act and Tokenized Collateral
President Donald Trump signed the GENIUS Act in July, establishing rules for US-licensed payment stablecoins. The CFTC anticipates releasing regulations that build on this framework.
The initiative aligns with several industry efforts:
- Crypto CEO Forum held in February 2025 to gauge industry views on non-cash collateral.
- Digital Asset Markets Subcommittee recommending broader adoption of tokenized collateral using DLT.
- Implementation of the President’s Working Group on Digital Asset Markets recommendations.
Changes to US Crypto Regulation
Pham’s announcement coincides with efforts by the SEC to modernize crypto rules.
- SEC Chair Paul Atkins is establishing exemptions for innovation to provide temporary relief for crypto firms while specific regulations are developed.
- Project Crypto aims to move segments of US financial markets on-chain and update securities laws concerning digital assets.
Pham emphasized that clear rules for stablecoin collateral will increase market transparency, bolster institutional confidence, and enhance market resilience.
