CFTC Pilot Allows BTC, ETH, USDC as Collateral in Derivatives

The U.S. Commodities and Futures Trading Commission (CFTC) is now conducting a pilot program. This allows BTC, ETH, and USDC to be used as collateral for the US derivatives market.

This marks yet another push to get digital assets in mainstream finance and support for tokenized collateral.

CFTC Allows For BTC, ETH, and USDC Tokenized Collateral In Market

Caroline Pham, the acting CFTC chair, announced the pilot program. This initiative offers updated guidance for tokenized collateral. It also includes a limited no-action framework for futures commission merchants (FCMs).

CFTC said that it will follow rules in line with the passing of the GENIUS Act in 2025 and remove older restrictions. According to the regulator, the program aims to expand the use of digital assets in regulated markets. However, the agency said that it will preserve regulatory oversight and customer protections.

Futures commission merchants (FCMs) will temporarily accept digital assets for customer margins. They will allow only a limited range of assets. This includes Bitcoin (BTC), Ethereum (ETH), and Circle’s USDC stablecoin.

For the first three months, participating firms must file weekly reports outlining the total digital assets held in customer accounts. Moreover, participants need to immediately report any material incidents related to the use of digital asset collateral.

Speaking on the development, Pham wrote:

“Today, I am launching a U.S. digital assets pilot program for tokenized collateral, including bitcoin and ether, in our derivatives markets that establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting. The CFTC is also providing regulatory clarity through tokenized collateral guidance for real-world assets like U.S. Treasuries, and withdrawing CFTC requirements that are now outdated under the GENIUS Act.”

Crypto Industry Celebrates the CFTC Decision

Several crypto industry leads, including Coinbase CLO Paul Grewal, backed Pham on this development. Circle CEO Jeremy Allaire noted, “This is tremendous progress, and I applaud Caroline Pham for breaking through with this new guidance. USDC as collateral on CFTC-regulated exchanges is a key step towards tokenized and more capital-efficient markets”.

Crypto.com CEO Kris Marszalek also said that the move will bring tokenized collateral to the US market on a large scale. It will help support round-the-clock trading in regulated derivatives products, he added.

“The CFTC guidance on tokenized collateral is the latest example of Acting Chairman Pham delivering on the promise of President Trump to make the United States the ‘crypto capital of the world.’ 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,” said Marszalek.

Introducing Several Crypto-Friendly Measures

Recently, the US commodities regulator has implemented several crypto-friendly measures. Last week, the CFTC authorized federally regulated spot cryptocurrency trading in the United States for the first time.

Thus, exchanges like Bitnomial are preparing to launch next week under the agency’s oversight. Commissioner Caroline Pham said CFTC-registered platforms will begin listing spot crypto products.

This will give both retail and institutional investors access to spot, futures, options, and perpetuals within a single regulated venue.

The CFTC’s Market Participants Division issued new guidance. The Division of Market Oversight joined in releasing it. The Division of Clearing and Risk explained how tokenized assets should be evaluated under existing rules.

The agency reiterated that its rules are “technology neutral.” It noted that tokenized assets should be assessed individually under current policies rather than treated as a distinct asset class.