Crypto Industry Backs CFTC Plan to Unlock Stablecoins as Billions in Collateral
Major crypto companies are rallying behind a new CFTC proposal that could unlock stablecoins for use as collateral in the multi-trillion-dollar derivatives market.
The initiative would allow stablecoins like USDC and Tether to be treated on par with cash and US Treasuries, a move strongly supported by issuers Circle and Tether, as well as exchanges like Coinbase and Crypto.com.
CFTC Acting Chair Caroline Pham announced the plan, emphasizing a collaborative approach with stakeholders and setting an October 20 deadline for feedback.
Circle President Heath Tarbert praised the underlying GENIUS Act, stating it “creates a world where payment stablecoins… can be used as collateral in derivatives and other traditional financial markets,” signaling a major expansion of stablecoin utility.
