CFTC Pushes Forward with Stablecoin Collateral Initiative for Derivatives Markets

TLDR

• CFTC acting chairman Caroline Pham launches initiative to allow stablecoins as tokenized collateral in derivatives markets
• Industry feedback being collected until October 20, with major crypto companies like Circle, Coinbase, and Ripple supporting the move
• Initiative builds on the GENIUS Act signed by President Trump in July, which establishes rules for payment stablecoins
• Stablecoins like USDC and Tether would be treated similarly to traditional collateral like cash or US Treasuries
• Move is part of broader “crypto sprint” to integrate digital assets into regulated US financial markets

The US Commodity Futures Trading Commission is moving ahead with plans to allow stablecoins and other tokenized assets as collateral in derivatives trading. Acting chairman Caroline Pham announced the initiative Tuesday as part of the agency’s ongoing efforts to integrate crypto into traditional finance.

The CFTC is seeking public input on the proposal through October 20. The agency wants feedback on how to implement policies that would let derivatives traders use stablecoins to meet margin requirements.

Pham has been advocating for this approach since serving as a commissioner in the previous administration. She previously pushed for a regulatory sandbox for tokenization and announced plans for a stablecoin pilot program after becoming acting chairman.

Major Crypto Companies Support the Plan

Leading crypto companies have endorsed the CFTC’s initiative. Circle president Heath Tarbert said the move would allow payment stablecoins from licensed American companies to serve as derivatives collateral.

Coinbase chief legal officer Paul Grewal posted on social media that tokenized collateral could unlock US derivatives markets. He said the change would help America stay ahead of global competition.

Ripple’s Jack McDonald called the plan a key step toward integrating stablecoins into regulated financial markets. He said clear rules for valuation, custody, and settlement would give institutions needed certainty.

Other companies backing the initiative include Tether and Crypto.com. The broad industry support suggests strong appetite for using stablecoins in traditional finance.

Building on Recent Regulatory Progress

The initiative builds on the GENIUS Act that President Trump signed in July. The law established clear rules for payment stablecoins but still awaits final regulations before full implementation.

Under the proposal, stablecoins like USDC and Tether would receive similar treatment to traditional collateral such as cash or US Treasuries. This would represent a major step in legitimizing digital assets within regulated markets.

The plan connects to the CFTC’s Crypto CEO Forum held in February. That meeting brought together industry leaders to discuss digital asset pilot programs and tokenized collateral use cases.

The President’s Working Group on Digital Asset Markets also recommended that the CFTC provide guidance on tokenized non-cash collateral. Pham’s announcement directly addresses that recommendation as part of the agency’s broader crypto sprint.

The CFTC is taking comments on the tokenized collateral initiative until October 20, with implementation details still being developed.

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