thecryptobasic.com
The U.S. CFTC has unveiled a pilot that allows Bitcoin, Ethereum, and USDC to serve as collateral in regulated derivatives markets.
The launch marks one of the agency’s most significant moves toward weaving digital assets into established financial systems.
Acting Chair Caroline Pham introduced the pilot in Washington, emphasizing that U.S. traders need safer venues after years of losses on lightly regulated offshore platforms. She said the new initiative gives regulators real-time insight into how tokenized collateral behaves during volatile conditions.
Building on that point, the pilot establishes a controlled environment where officials can closely observe custody practices, segregation requirements, and valuation adjustments.
By doing so, the CFTC aims to evaluate operational risks without slowing the industry’s transition toward tokenized instruments.
Guidance Clarifies Treatment of Tokenized Assets
Alongside the pilot, the agency’s three divisions released updated guidance explaining how tokenized assets fit within the existing regulatory structure. This clarification is intended to reduce uncertainty for firms exploring digital settlement models.
The guidance extends to tokenized real-world assets such as U.S. Treasuries and money market funds, outlining expectations across custody, haircuts, and operational risk management.
Together, these standards aim to bring consistency as more institutions experiment with tokenized financial products.
Limited Early Phase for Futures Commission Merchants
In parallel, the CFTC granted no-action relief to futures commission merchants interested in accepting certain non-securities digital assets as margin. However, the early phase remains intentionally narrow. For the first three months, only BTC, ETH, and USDC qualify.
This restricted rollout is coupled with enhanced reporting obligations. FCMs must file weekly updates detailing the amounts held and notify the agency of any significant issues.
These disclosures help regulators understand how digital collateral performs in practice before considering broader adoption.
Regulators Retire Older Virtual-Currency Guidance
The policy shift also prompted the CFTC to retire a 2020 advisory that discouraged the use of virtual currencies as collateral.
The agency stated that the document no longer accurately reflects market realities, particularly after several years of development and changes introduced under the GENIUS Act.
Therefore, removing the outdated guidance creates clearer alignment with present conditions and the direction of the new pilot.
Crypto Industry Welcomes the Policy Reset
The announcement drew wide support from major industry players. Coinbase’s legal chief, Paul Grewal, said that the decision highlights the efficiency of digital assets in payment systems.
Similarly, Circle president Heath Tarbert added that regulated stablecoins could reduce settlement delays and support continuous trading.
Moreover, Crypto.com CEO Kris Marszalek called the shift a notable milestone and connected it to President Trump’s stated ambitions for U.S. crypto leadership.
Ripple executive Jack McDonald said the recognition of tokenized collateral could enhance capital efficiency for firms operating in U.S. markets.
Industry Feedback Shaped Final Framework
According to the CFTC, the pilot and supporting guidance reflect recommendations from the Digital Asset Markets Subcommittee. The agency also considered feedback shared during industry forums.
This collaborative approach signals the agency’s intent to refine the framework as market participants test tokenized collateral in real environments.
With the pilot now underway, Bitcoin, Ethereum, and USDC are set to take a more formal role in U.S. derivatives markets. Regulators plan to review the data closely before determining next steps for broader adoption.