Quick Breakdown
- The CFTC plans to allow stablecoins, like USDC and USDT, as collateral in U.S. derivatives markets, with feedback open until October 20.
- Crypto leaders from Circle, Tether, Ripple, Coinbase, and Crypto.com strongly endorsed the initiative, calling it a breakthrough for liquidity and efficiency.
- The proposal aligns with broader U.S. crypto reforms, including the GENIUS Act and the SEC’s Project Crypto, to integrate digital assets into regulated markets.
The U.S. Commodity Futures Trading Commission (CFTC) is exploring a landmark move to permit tokenized assets, including stablecoins, as collateral in regulated derivatives markets. The plan, unveiled Tuesday by Acting Chair Caroline Pham, is open for public feedback until October 20.
Stablecoins poised for expanded role
Under the proposal, stablecoins such as USDC and USDT could soon be treated on par with traditional forms of collateral like cash and U.S. Treasurys. The initiative builds on Congress’s recent passage of the GENIUS Act, signed by President Donald Trump in July, which established a legal framework for payment stablecoins. Final regulatory guidelines are still pending.
“Tokenized markets are here, and they are the future,”
Pham said.
“Collateral management has always been the killer app for stablecoins.”
Crypto executives voice strong support
Executives from Circle, Tether, Ripple, Coinbase, and Crypto.com quickly rallied behind the CFTC’s plan. Circle president Heath Tarbert said the GENIUS Act opens the door for stablecoins to lower costs, reduce risks, and unlock liquidity “24/7/365.” Paul Grewal, Coinbase CLO, argued that tokenized collateral can “unlock U.S. derivatives markets and put us ahead of global competition.”
Tokenized collateral and stablecoins can unlock US derivatives markets and put us ahead of global competition. Really exciting to see @CFTC put together this initiative to modernize the market by increasing efficiency, reducing costs, and upping liquidity to the benefit of all. https://t.co/bhMuQ7MauN
— paulgrewal.eth (@iampaulgrewal) September 23, 2025
Ripple’s Jack McDonald called the move critical for integrating stablecoins into the “heart of regulated financial markets,” stressing that clear rules on valuation, custody, and reserves would strengthen trust and resilience.
Initiative tied to broader crypto reforms
The CFTC’s proposal is part of its wider digital asset sprint, launched earlier this year to apply recommendations from the President’s Working Group on Digital Asset Markets. The initiative follows discussions from February’s Crypto CEO Forum, which invited industry leaders to weigh in on a pilot program for tokenized collateral.
On the same day, SEC Chair Paul Atkins announced his agency is considering an “innovation exemption” to give crypto companies temporary relief from outdated securities rules. The SEC is also advancing Project Crypto, aimed at modernizing securities regulations and pushing U.S. markets further onchain.
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