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
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
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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.
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