Crypto Collateral? CFTC Considers Stablecoin Proposal

Written by Aaron S.,

Editor-In-Chief

Last Updated: September 24, 2025

Key Takeaways

The CFTC is reviewing a proposal to allow stablecoins like USDC and Tether as collateral in US derivatives trading;
Public feedback is being collected until October 20, with growing support from major crypto firms including Circle, Ripple, and Coinbase;
Supporters said this decision could cut costs, improve liquidity, and strengthen trust through clear rules for stablecoin use in finance.

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The US Commodity Futures Trading Commission (CFTC) is considering a proposal that would allow certain digital currencies, particularly stablecoins, to be used as collateral in derivatives trading.

This would mean that stablecoins, such as USDC USDC $1.00 and Tether USDT $1.00 , could be accepted alongside traditional assets like cash and government bonds in regulated financial markets.

Acting Chair of the CFTC, Caroline Pham, mentioned the agency is actively seeking opinions from the public and market participants and will continue to collect feedback until October 20.

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She emphasized the importance of adapting to market changes and noted that managing collateral might be one of the most practical uses for stablecoins in financial systems.

The decision is gaining support from several players in the cryptocurrency industry, including representatives from Circle, Tether, Ripple, Coinbase $1.73B , and Crypto.com $2.96B .

Heath Tarbert, president of Circle, highlighted that the GENIUS Act could make it easier for stablecoins issued by licensed American firms to be used in traditional markets.

According to Tarbert, this could lead to lower transaction costs, reduced risk, and more continuous access to liquidity worldwide.

Ripple’s Jack McDonald said that bringing stablecoins into regulated trading would improve how these markets operate and provide more transparency.

He pointed out that clear guidelines around valuation, holding methods, and transaction processing would help build confidence among financial institutions.

Recently, financial regulators in the US issued a new statement explaining how licensed exchanges can offer spot crypto trading. What did they say? Read the full story.