CFTC Opens Door To Crypto Collateral In Derivatives Markets With New Digital Assets Pilot

• The CFTC introduced a pilot program allowing bitcoin, ether and USDC to be used as collateral in derivatives markets.
• Futures commission merchants received a no-action path to accept certain digital assets as margin with initial limits and reporting rules.
• Crypto industry leaders said the move delivers long-awaited regulatory clarity for tokenized collateral.

The Commodity Futures Trading Commission on Monday unveiled a new digital assets pilot program that will allow certain tokens including bitcoin, ether and USDC to be used as collateral in U.S. derivatives markets. The agency also issued guidance on tokenized collateral and withdrew earlier requirements that no longer apply following the passage of the GENIUS Act.

CFTC Sets Framework For Tokenized Collateral

CFTC said the initiative marks a "significant milestone" in expanding the use of digital assets in regulated markets with defined guardrails. The pilot follows a tokenized collateral effort launched in September under the agency’s Crypto Sprint.

CFTC Acting Chairman Caroline Pham said the program establishes protections around customer assets and requires improved monitoring and reporting. The guidance confirms that existing CFTC regulations are technology-neutral and can accommodate tokenized real-world assets such as U.S. Treasuries and money-market funds.

The agency also issued a no-action position for futures commission merchants that accept non-securities digital assets as customer margin collateral, including payment stablecoins. For the first three months, eligible collateral will be limited to bitcoin, ether and USDC, with weekly reporting requirements.

Crypto Leaders Welcome Regulatory Clarity

"The CFTC's decision confirms what the crypto industry has long known: That stablecoins and digital assets can make payments faster, cheaper, and reduce risk,” said Paul Grewal, Coinbase’s Chief Legal Officer.

Circle President Heath Tarbert said the move advances customer protection, reduces settlement frictions, and supports wider use of supervised payment stablecoins.

Crypto.com CEO Kris Marszalek called the announcement an important milestone, noting "this means 24/7 trading is a reality in the United States. We are fully open for business and are excited for this new chapter.” Ripple executive Jack McDonald said the step provides clarity for integrating tokenized assets into margin frameworks and improves capital efficiency.

Outdated Guidance Withdrawn

The CFTC withdrew an earlier guidance issued in 2020, which had restricted how futures commission merchants could accept virtual currencies as collateral. The agency said developments since then, including the GENIUS Act, have made the advisory outdated.

Officials said the new actions reflect public comments, discussions from a CFTC Crypto CEO Forum, and recommendations from the Digital Asset Markets Subcommittee of the agency’s Global Markets Advisory Committee.

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