Hey everyone, you're watching Coin Desk Daily. I'm your host, Jen Sanasi.

Tether is looking to raise up to $20 billion, raising its valuation to $500 billion.

That's according to Bloomberg. Tether would be issuing new equity, and Kander Fitzgerald is acting as lead advisor.

The massive raise would put it in the same league as Open AI and SpaceX.

Tether's USDT has a market cap of around $172.8 billion, making it the largest amongst stable coins.

Bloomberg said that the talks of the deal are in early stages and the final numbers of the raise could be significantly lower.

The CFTC is starting an initiative to allow stable coins as tokenized collateral to satisfy

margin needs in the derivatives market, inviting input from the industry on how to bring such a

policy online. Acting chief, Caroline Fam, is continuing to advance policy in the absence of

President Donald Trump's current nominee Brian Quintends to be the chairman.

In a statement on Tuesday, Femm said, quote,

For years, I have said that collateral management is the killer app for stable coins in the market.

The acting chair has been pushing for a regulatory sandbox for tokenization since last year

when she served as a commissioner during the previous administration. And Bitcoin has broken below key support, prompting a flurry of buy-the-dip calls on social media.

However, liquidity trends suggest a potential for a deeper decline. Bitcoin dropped over 3% to $11,590

this week, piercing the widely tracked 50-and-100-day simple moving averages. Both indicators have lost

their upward momentum for the first time since April,

now flatlining a cautious signal for bulls. There's a bit of spike and by the dip mentions on

social media, this is considered a contrarian signal by sentiment, meaning that the price

pullback could deepen. That's a wrap for CoinDesk Daily. Get more updates on CoinDesk.com

And we'll see you next time.