CFTC's Historic Approval of Stablecoins: To Be Used in Derivatives Markets

The U.S. Commodity Futures Trading Commission (CFTC) has taken an important step towards the use of stablecoins as collateral for derivatives transactions. This initiative, announced by CFTC Acting Chair Caroline D. Pham, was discussed at the Crypto CEO Forum held on February 2025 and is now official. This is considered a milestone in the US derivatives markets.

The CFTC has begun the process of soliciting public comment on the use of stablecoins as tokenized collateral. This step aims to diversify non-cash collateral using "distributed ledger technology". In derivatives markets, collateral reduces counterparty risk by securing traders' contractual obligations. The integration of digital assets such as stablecoins as collateral addresses the industry's needs for transparency and efficiency.

Caroline Pham said that stablecoins have significant potential in collateral management. This step is both part of the CFTC's crypto-focused "sprint" program and a reflection of a regulatory sandbox (experimental regulatory space) to collaborate with the industry. The US Congress accelerated this process over the summer by enacting the GENIUS Act, a special legal framework for stabilized coins.

The CFTC invited industry stakeholders to submit written comments by October 20. The consultation process will specifically consider proposals on valuation, custody, clearing and settlement, and rule changes. "Markets now want tokenized solutions. This is part of the future, and we are rapidly advancing responsible innovation."