The US Commodity Futures Trading Commission (CFTC) has proposed allowing stablecoins to serve as collateral in derivatives markets.
The move opened a new phase in the interaction between digital assets and traditional finance. The plan, still at the consultation stage, would extend the use of stablecoins beyond crypto-specific products into mainstream financial instruments. It’s worth noting that the proposal is currently non-binding. A consultation window is open until 20 October 2025, during which stakeholders and the public may submit feedback. According to the CFTC, the objective is to assess whether such assets can be integrated into derivatives trading without undermining market stability.
Industry groups, including well-known stablecoin issuers and cryptocurrency firms, have already expressed support for the measure. Officials from these firms have argued that expanding stablecoin use in derivatives could provide greater efficiency and liquidity for traders, although some have also noted that the regulatory framework surrounding stablecoins remains unsettled. For instance, the possibility of new federal rules governing the issuance of stablecoins raises questions about which assets would be eligible if the proposal is adopted.
Possible impact on retail participation
If implemented, the change could lower barriers to entry for retail investors looking for exposure to derivatives, as many already hold stablecoins. Derivatives markets traditionally carry higher risks than equities, and regulators have historically restricted retail access to limit potential losses. By recognising stablecoins as collateral, the CFTC could make these markets more accessible, but it may also increase the likelihood of inexperienced traders taking on substantial risk.
Officials at the Commission noted that the initiative reflects a more general effort to incorporate digital assets into the regulated financial system while maintaining safeguards. According to Yahoo Finance, whether stablecoins become a routine part of derivatives collateral will depend on the feedback process and subsequent regulatory decisions.
