The U.S. Commodity Futures Trading Commission (CFTC) has launched a pilot program that will allow Bitcoin, Ethereum, and the stablecoin USDC to be used as collateral in regulated derivatives markets. This initiative marks a significant shift in how U.S. regulators approach digital assets. The program aims to expand the use of digital assets in regulated markets while maintaining oversight and customer protection.
Acting CFTC Chair Caroline Pham stated that the program is designed to provide Americans with safe U.S. markets as an alternative to offshore platforms. The pilot program establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting.
Under the pilot program, Futures Commission Merchants (FCMs) will be temporarily allowed to accept a select group of digital assets, including Bitcoin, as customer margin. During the first three months of participation, firms must submit weekly reports to the CFTC detailing the total amount of digital assets held in customer accounts, broken down by asset and account class. Companies must also notify regulators of any material incident involving the use of digital collateral. The agency stated that the reporting requirement is intended to give staff real-time insight into operational risks while allowing firms controlled access to tokenized collateral.
The CFTC also formally withdrew Staff Advisory No. 20-34, which had restricted how virtual currencies could be held in customer accounts since 2020. The agency said that developments in digital markets and the enactment of the GENIUS Act made the advisory obsolete. The GENIUS Act, passed in July, established a federal framework for non-securities digital assets and expanded the CFTC's authority over both spot crypto markets and tokenized collateral.
The CFTC's move has been welcomed by crypto and fintech firms, who say the changes offer long-awaited regulatory certainty. Coinbase Chief Legal Officer Paul Grewal stated that the move confirms the industry's belief that stablecoins and digital assets can reduce risk and improve efficiency in financial markets. Circle President Heath Tarbert said the changes would reduce settlement risk and friction in derivatives trading by enabling near real-time margin settlement. Crypto.com CEO Kris Marszalek said the announcement would allow tokenized collateral to be used in U.S. markets for the first time at scale, supporting 24/7 trading in regulated derivatives products.
The CFTC's pilot program could have a significant impact on the U.S. cryptocurrency market. By allowing tokenized assets, such as Bitcoin, Ethereum, and USDC, to serve as margin collateral, the program may increase the liquidity of derivatives markets and attract new institutional investors. This inclusion may lead to reduced dependence on offshore exchanges, increasing the number of trades and the capital raised under U.S. regulatory oversight. The collateral-related guidance also includes tokenised versions of US Treasuries and money-market funds, with clear requirements for asset segregation, reporting and surveillance.
In addition to the pilot program, the CFTC allowed federally regulated spot crypto trading in the U.S. for the first time last week, with Bitnomial set to launch its exchange next week under CFTC oversight. Pham said CFTC-registered venues will list spot crypto products, enabling retail and institutional traders to access spot, futures, options, and perpetuals on a single regulated platform.
