The CFTC is proposing to allow stablecoins and other tokenized assets to be used as collateral in regulated derivatives markets, aiming to treat trusted stablecoins like cash or Treasurys and unlock 24/7 liquidity while stakeholders comment through Oct. 20.
CFTC to permit tokenized collateral in derivatives
Stakeholders invited to comment on tokenized stablecoins until Oct. 20
Industry leaders (Circle, Tether, Ripple, Coinbase, Crypto.com) publicly support the proposal
CFTC stablecoin collateral: regulators seek comments on tokenized assets as derivatives collateral—read how this could change market liquidity and risk management.
What is the CFTC’s plan for stablecoin collateral?
CFTC stablecoin collateral refers to a proposed framework by the Commodity Futures Trading Commission to allow tokenized assets, including payment stablecoins, to be posted as collateral in regulated derivatives trading. The agency is soliciting stakeholder feedback through Oct. 20 to finalize technical and custody guardrails.
How would tokenized collateral work in derivatives markets?
Tokenized collateral would function like existing non-cash collateral (e.g., securities) but held and transferred via distributed ledger technology. The CFTC aims to define valuation, custody, settlement and reserve requirements so stablecoins can be treated similarly to cash or U.S. Treasurys.
‘,
‘
🚀 Advanced Trading Tools Await You!
Maximize your potential. Join now and start trading!
‘,
‘
📈 Professional Trading Platform
Leverage advanced tools and a wide range of coins to boost your investments. Sign up now!
‘
];
var adplace = document.getElementById(“ads-bitget”);
if (adplace) {
var sessperindex = parseInt(sessionStorage.getItem(“adsindexBitget”));
var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBitget.length) : sessperindex;
adplace.innerHTML = adscodesBitget[adsindex];
sessperindex = adsindex === adscodesBitget.length – 1 ? 0 : adsindex + 1;
sessionStorage.setItem(“adsindexBitget”, sessperindex);
}
})();
Acting Chair Caroline Pham emphasized working “closely with stakeholders” and positioned collateral management as a primary use-case for stablecoins in regulated markets. Industry executives from Circle, Tether, Ripple, Coinbase and Crypto.com publicly endorsed the approach.
Why are industry leaders backing tokenized collateral?
Executives say tokenized collateral—especially trusted stablecoins like USDC and USDT—can lower funding costs, reduce settlement risk, and provide round-the-clock liquidity. Circle president Heath Tarbert said the GENIUS Act framework enables licensed U.S. payment stablecoins to be integrated into traditional markets.
Coinbase chief legal officer Paul Grewal described tokenized collateral as a way to “unlock US derivatives markets and put us ahead of global competition.” Ripple’s stablecoins lead highlighted that clear rules for valuation and custody will build institutional trust and resilience.
When did this initiative begin and what are the next steps?
The initiative traces to early 2025 workstreams, including the CFTC’s Crypto CEO Forum and recommendations from the Global Markets Advisory Committee’s Digital Asset Markets Subcommittee. The agency’s public comment period runs until Oct. 20, after which the CFTC will consider technical standards and any pilot programs.
‘,
‘
🔒 Secure and Fast Transactions
Diversify your investments with a wide range of coins. Join now!
‘,
‘
💎 The Easiest Way to Invest in Crypto
Dont wait to get started. Click now and discover the advantages!
‘
];
var adplace = document.getElementById(“ads-binance”);
if (adplace) {
var sessperindex = parseInt(sessionStorage.getItem(“adsindexBinance”));
var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBinance.length) : sessperindex;
adplace.innerHTML = adscodesBinance[adsindex];
sessperindex = adsindex === adscodesBinance.length – 1 ? 0 : adsindex + 1;
sessionStorage.setItem(“adsindexBinance”, sessperindex);
}
})();
This move complements other agencies’ efforts: Congress passed the GENIUS Act earlier this year to regulate payment stablecoins, and the SEC has signaled innovation-focused exemptions and Project Crypto to modernize securities rules for onchain markets.
Regulatory alignment aims to enable banks and institutional counterparties to accept tokenized collateral while maintaining market integrity and consumer protections.
‘
];
var adplace = document.getElementById(“ads-htx”);
if (adplace) {
var sessperindex = parseInt(sessionStorage.getItem(“adsindexHtx”));
var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesHtx.length) : sessperindex;
adplace.innerHTML = adscodesHtx[adsindex];
sessperindex = adsindex === adscodesHtx.length – 1 ? 0 : adsindex + 1;
sessionStorage.setItem(“adsindexHtx”, sessperindex);
}
})();