CFTC initiative to allow stablecoins as collateral in derivatives markets

US Commodity Futures Trading Commission acting chair Caroline Pham said her agency is looking to allow derivatives traders to post stablecoins and tokenized assets as collateral.

The US Commodity Futures Trading Commission is looking to allow tokenized assets, including stablecoins, to be used in derivatives markets as collateral in a move supported by crypto executives.

CFTC acting chair Caroline Pham said on Tuesday that her agency will “work closely with stakeholders” on the scheme and is encouraging feedback on using tokenized collateral in derivatives markets until Oct. 20.

If implemented, stablecoins like USDC (USDC) and Tether (USDT) would be treated similarly to traditional collateral like cash or US Treasurys in regulated derivatives trading. Congress passed laws earlier this year regulating stablecoins, which have seen their adoption grow among financial institutions.

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