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The US CFTC has launched an initiative to explore the use of stablecoins as collateral in derivatives markets, with public input open until Oct. 20th.

CFTC Launches Initiative For Tokenized Collateral & Stablecoins In Derivatives

As revealed in a press release, Commodity Futures Trading Commission (CFTC) Acting Chairman Caroline D. Pham has enacted an initiative for the use of tokenized collateral in derivatives markets. Stablecoins, cryptocurrencies pegged to a fiat currency, are set to play a role in the effort.

“The public has spoken: tokenized markets are here, and they are the future,” said Pham. “For years I have said that collateral management is the ‘killer app’ for stablecoins in markets.”

The initiative is part of CFTC’s “Crypto Sprint” announced at the start of August. Pham introduced it to implement recommendations from the President’s Working Group report on digital assets. The push mirrors the Securities and Exchange Commission’s (SEC’s) “Project Crypto.”

The President’s Working Group report asked the CFTC to “provide guidance on the adoption of tokenized non-cash collateral as regulatory margin.” The latest move comes in response to this recommendation and also builds on the regulator’s Crypto CEO Forum held back in February 2025.

The Acting Chairman noted:

At our historic Crypto CEO Forum, we discussed how innovation and blockchain technology will drive progress in derivatives markets, especially for modernization of collateral management and greater capital efficiency.

The regulator has invited interested stakeholders to provide written feedback and suggestions on its website regarding the use of stablecoins as collateral in derivatives markets by October 20th. “The CFTC continues to move full speed ahead at the cutting edge of responsible innovation, and I appreciate the support of our industry partners,” added Pham.

Stablecoins have been enjoying capital inflows recently, with their combined market cap sitting at the $294 billion mark today, a new all-time high (ATH). Below is a chart from DeFiLlama that shows how the market cap of these cryptocurrencies has changed during the last few years.

The value of the metric appears to have been going up sharply in recent months | Source: DeFiLlama

From the graph, it’s visible that stablecoins have been in a phase of growth since 2024, with inflows only accelerating recently. During the past week alone, the market cap of these fiat-tied tokens has increased by over $4 billion.

In terms of the individual coins, Tether’s USDT continues to be the most dominant, with its market cap of $173 billion accounting for almost 59% of the sector.

The top 10 stablecoins ranked on the basis of market cap | Source: DeFiLlama

Circle’s USDC ranks second with a market cap of $73 billion, significantly below USDT, but nonetheless dominant in its own right considering its lead over the third largest stablecoin.

Bitcoin Price

At the time of writing, Bitcoin is floating around $112,800, down more than 3% over the last week.

Looks like the price of the coin has plummeted over the last few days | Source: BTCUSDT on TradingView

Featured image from Dall-E, DeFiLlama.com, chart from TradingView.com

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