Stablecoins Approved as Collateral in the U.S. Derivatives Market: What You Need to Know

Jakarta, Pintu News – The use of stablecoins as collateral in derivatives markets in the United States has been given the green light by the CFTC. The move is expected to lower barriers for retail traders to jump into riskier TradFi investments.

While the plan is still in the public input collection stage until October 20, it has already received support from major crypto firms such as Coinbase, Circle, and Ripple.

Stablecoins in Derivatives Trading

Caroline Pham, Chair of the CFTC, has announced the latest plans to allow the use of stablecoins as collateral in the US derivatives market. The move is part of the CFTC’s aggressive efforts in adopting pro-crypto regulations since Pham took office.

While this plan is still non-binding, the CFTC is seeking input from various stakeholders to see if it can be implemented. In a press release, the CFTC stated that the integration of stablecoins in the US derivatives market still needs a lot of consideration.

For example, it has not been made clear how the new stablecoin regulations, which may ban leading assets, will interact with these derivatives plans. However, by opening up the opportunity for the public to comment, the CFTC hopes to gather a range of views that will aid in policymaking.

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Ease of Transaction, Greater Risk

While the details are yet to be fully decided, the general idea of this plan is already quite clear. A few months ago, the FHFA started considering cryptocurrencies in the assessment of mortgage loan applications. This plan will allow retail traders to use stablecoins as collateral to access the US derivatives market, which was previously harder for them to reach.

The move is expected to democratize access to the growing derivatives market, as many retail traders already own stablecoins. However, it’s important to keep in mind that these investments are much riskier than regular stocks, which has previously led US regulations to shy away from widespread adoption. However, with Pham’s plan, those barriers could be removed.

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Potential Advantages and Disadvantages

As long as the market continues to develop steadily, traders new to the derivatives market can make significant profits. However, if the US economy takes a downturn, this move could magnify losses. This is a double-edged sword that all parties involved need to be aware of.

By easing access to the stock market, US citizens may find it easier to suffer huge financial losses. Hopefully, such a bad scenario won’t happen anytime soon. However, it is important for everyone to consider these risks before diving in.

Conclusion

The opportunity to participate in the derivatives market using stablecoins as collateral opens up many new opportunities for retail traders. However, it is important to remain vigilant and consider all the risks involved. The CFTC’s decision to gather public input until October 20 is a valuable opportunity for all parties involved to provide their views and suggestions.

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• BeInCrypto. CFTC: Stablecoin Derivatives Collateralize Risky Bets. Accessed on September 24, 2025
• Featured Image: Generated by Ai