The Commodity Futures Trading Commission (CFTC) launched a pioneering initiative on September 23, 2025, enabling derivatives traders to use stablecoins as collateral, a move led by Acting Chair Caroline D. Pham. This program, part of the CFTC's regulatory modernization efforts, includes a pilot with Coinbase and Nodal Clear utilizing USDC, Circle's stablecoin, and aligns with recommendations from the President's Working Group on Digital Asset Markets.
Pham, a long-time advocate for blockchain innovation, stated, "For years I have said that collateral management is the 'killer app' for stablecoins in markets." The announcement triggered a 17% surge in Coinbase's stock, reflecting institutional optimism. Industry leaders from Circle, Crypto.com, and Ripple endorsed the initiative, emphasizing its potential to enhance liquidity and capital efficiency in derivatives trading.
The CFTC has invited public comments by October 20, 2025, and may expand the program to include other stablecoins or tokens like Ethereum and Bitcoin. This builds on prior CFTC pilot programs and signals growing acceptance of digital assets in traditional finance.