The US Commodity Futures Trading Commission (CFTC) is looking into using stablecoins as collateral for derivatives trading. They want your input!
CFTC’s Big Plan
The CFTC, led by Acting Chair Caroline Pham, has launched an initiative to explore using stablecoins – cryptocurrencies pegged to a regular currency like the dollar – as collateral. This is part of their “Crypto Sprint,” aimed at modernizing financial markets using blockchain technology. The idea is to follow recommendations from a presidential working group and build on previous discussions with industry leaders. Pham believes that stablecoin collateral is a game-changer for the market.
Why Stablecoins?
This move comes as stablecoins are experiencing a huge surge in popularity. Their total value recently hit a record high of $294 billion, with growth accelerating lately. Tether (USDT) is the biggest player, holding almost 60% of the market, followed by USDC from Circle.
What Happens Next?
The CFTC is asking for public feedback on this idea until October 20th. They’re encouraging anyone interested to share their thoughts and suggestions on their website. The CFTC is clearly pushing forward with innovation in the financial world.
Bitcoin Update (Quick Note)
Just a quick update: Bitcoin’s price is currently around $112,800, down slightly this week.