- The CFTC pilot permits BTC, ETH, and USDC as collateral under strict custody, valuation, and reporting standards.
- Weekly oversight ensures detailed monitoring of approved digital assets during the program’s initial rollout phase.
- Major industry leaders support the framework, seeing tokenized collateral as key to safer and more efficient markets.
- Withdrawal of outdated rules and new guidance for tokenized assets establish a modern regulatory approach for the sector.
The Commodity Futures Trading Commission has introduced a pilot program permitting bitcoin, ether, and USDC to be used as collateral in U.S. derivatives markets.
Acting Chairman Caroline D. Pham announced the initiative as part of her broader push to expand safe access to digital assets under U.S. oversight.
Her announcement follows the tokenized collateral initiative launched during the CFTC’s Crypto Sprint and reflects recommendations from the President’s Working Group on Digital Asset Markets.
Acting Chairman Pham stated that the CFTC is “leading the way forward into America’s Golden Age of Innovation and Crypto,” adding that Americans deserve “safe U.S. markets as an alternative to offshore platforms.” The update also includes new guidance for tokenized real-world assets and the withdrawal of older requirements made outdated by the GENIUS Act.
Pilot Program Establishes Framework for BTC, ETH and USDC Collateral
The pilot allows Futures Commission Merchants to accept BTC, ETH, and USDC as customer margin collateral during the first three months of participation.
According to the pressrelease, the firms must meet strict requirements covering segregation, custody controls, valuation practices, and legal enforceability. This structure gives firms a controlled environment to use tokenized collateral while maintaining the protections required in regulated markets.
During this initial period, FCMs will provide weekly reports showing total digital assets held in customer accounts.
They must also notify the CFTC of any issues affecting digital asset collateral. These steps give CFTC staff the visibility needed to monitor emerging risks without restricting firms from using approved digital assets.
Pham described the program as one that “establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting.”
Her statement ties directly to a broader effort to expand safe access to digital assets while keeping high regulatory standards in place.
Industry leaders quickly responded. Coinbase Chief Legal Officer Paul Grewal said the decision “confirms what the crypto industry has long known: That stablecoins and digital assets can make payments faster, cheaper, and reduce risk.”
His remarks point to broader expectations that tokenized collateral will support more efficient markets.
Guidance and Industry Support Strengthen Market Confidence
The CFTC’s new guidance applies to tokenized Treasuries, money market funds, and other real-world assets.
It reinforces that tokenized products must be evaluated under the same regulatory framework as traditional collateral. This approach keeps rules consistent while giving market participants clarity on operational standards.
Circle President Heath Tarbert said the updated framework “protects customers, reduces settlement frictions, supports 24/7 risk reduction,” and advances U.S. dollar leadership through improved regulatory alignment.
He emphasized that near-real-time settlement can reduce liquidity pressures during evenings and weekends.
Crypto.com CEO Kris Marszalek called the guidance “an important milestone,” noting that tokenized collateral has long been available outside the United States. He said the agency’s oversight now makes 24/7 trading “a reality in the United States.”
Ripple’s Jack McDonald added that recognizing stablecoins as margin “will unlock greater capital efficiency” while supporting responsible scaling of digital assets.
The CFTC also withdrew Advisory No. 20-34, explaining that it no longer reflects current market conditions or the GENIUS Act.
The decision, shaped by public feedback and industry consultation, forms a more modern structure for integrating digital assets into U.S. derivatives markets.
