- The U.S. Commodity Futures Trading Commission (CFTC) plans to allow tokenized assets, like stablecoins, as collateral in derivatives markets.
- The CFTC is seeking public feedback on the use of tokenized collateral until October 20.
- Major crypto firms, including Circle, Tether, Ripple, Coinbase, and crypto.com, support this initiative.
- The recently signed GENIUS Act sets the stage for stablecoins issued by licensed U.S. firms to be used in regulated financial markets.
- The move aligns with broader U.S. efforts to update crypto regulations and integrate digital assets into traditional finance.
The U.S. Commodity Futures Trading Commission (CFTC) announced plans to permit tokenized assets such as stablecoins for use as collateral in regulated derivatives markets. This proposal is open for public input through October 20 and is part of an ongoing effort to update rules as stablecoins gain traction across financial institutions.
According to CFTC acting chair Caroline Pham, the agency will “work closely with stakeholders” to shape the use of tokenized collateral, including stablecoins like USDC and Tether’s USDT. If the plan is adopted, these stablecoins would be treated like cash or U.S. Treasury securities in derivatives trading.
Pham stated, “The public has spoken: tokenized markets are here, and they are the future. For years I have said that collateral management is the ‘killer app’ for stablecoins in markets.” Top executives from firms including Circle, Tether, Ripple Labs, Coinbase, and Crypto.com all voiced support for the CFTC’s move.
Circle president Heath Tarbert said the GENIUS Act, signed by President Donald Trump in July, “creates a world where payment stablecoins issued by licensed American companies can be used as collateral in derivatives and other traditional financial markets.” He added that using stablecoins like USDC would “lower costs, reduce risk, and unlock liquidity across global markets 24/7/365.” The GENIUS Act provides structure for the use of stablecoins but is waiting on final regulations.
Coinbase chief legal officer Paul Grewal commented in a recent X post that “tokenized collateral and stablecoins can unlock U.S. derivatives markets and put us ahead of global competition.” Ripple executive Jack McDonald said the move would integrate stablecoins deeper into regulated markets, increasing efficiency and transparency.
The CFTC’s proposal is part of its broader initiative to update digital asset rules. Earlier in 2025, the agency established a crypto CEO forum to discuss the use of tokenized assets in markets. Additionally, the Global Markets Advisory Committee has recommended expanding non-cash collateral options via blockchain technology.
On the same day as Pham’s announcement, Securities and Exchange Commission (SEC) Chair Paul Atkins revealed his agency is working on an innovation exemption to temporarily ease older securities rules for crypto firms. The SEC also launched Project Crypto to modernize financial regulations around digital assets and support moving traditional markets onchain.
These regulatory moves reflect ongoing efforts to adapt U.S. financial regulations to the growing presence of digital assets.
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