The US Commodity Futures Trading Commission (CFTC) is considering allowing tokenized assets, including stablecoins, to serve as collateral in derivatives markets, a move endorsed by crypto executives. Acting chair Caroline Pham announced that the CFTC will collaborate with stakeholders on this initiative, inviting feedback until October 20. If successful, stablecoins like USDC and Tether would be treated like traditional collateral in regulated derivatives trading. This follows Congress's recent legislation to regulate stablecoins, with stakeholders from prominent crypto companies, including Circle and Coinbase, supporting the initiative. They argue it could reduce costs, mitigate risks, and provide liquidity. Pham emphasized that clear rules regarding valuation, custody, and settlement are vital for institutional trust. This initiative builds upon previous recommendations from the President's Working Group on Digital Asset Markets, aiming to integrate stablecoins into regulated financial markets, thereby enhancing market efficiency and transparency. Pham's announcement coincides with ongoing regulatory discussions aimed at modernizing securities rules for cryptocurrencies.

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