CFTC Advances Stablecoin Use in Derivatives Markets

The Commodity Futures Trading Commission (CFTC) launched an initiative on September 23, 2025, to explore using tokenized collateral, including stablecoins, in derivatives markets. Acting Chairman Caroline Pham called collateral management a “killer app” for stablecoins, aiming to enhance capital efficiency and market liquidity. This could open up the door to innovative programmable finance, or “ProFi,” where credit default swaps are tied to smart contracts using stable coins to pay premiums and payouts upon default.

The initiative builds on recommendations from the CFTC’s Global Markets Advisory Committee and the President’s Working Group on Digital Assets, which urged guidance on valuation, custody, and settlement for tokenized collateral. The CFTC seeks public feedback by October 20, 2025, to shape potential pilot programs and regulatory amendments. Industry leaders like Circle’s Heath Tarbert and Ripple’s Jack McDonald praised the move, noting stablecoins’ potential to reduce costs and boost transparency. This aligns with the GENIUS Act, which regulates stablecoin issuance, signaling a US push to lead in tokenized finance. Businesses must navigate evolving rules to ensure compliance while leveraging these innovations.

Sabal Law PLLC’s expertise in blockchain, AML/KYC, and securities law helps clients navigate the evolving regulatory landscape of stablecoins and digital assets. We guide businesses and investors through compliance with the GENIUS Act, ensuring robust anti-fraud measures and secure transactions. Schedule a Consultation to protect your digital asset ventures and stay compliant with new regulations!

Source: Commodity Futures Trading Commission Press Release, September 23, 2025