The Commodity Futures Trading Commission [CFTC] has launched a pilot program that allows digital assets—including Bitcoin, Ethereum, and USDC—to be used as collateral in regulated derivatives markets.
The announcement on 8 December marked one of the most significant steps yet toward integrating crypto into U.S. financial infrastructure.
Acting Chairman Caroline Pham stated that the initiative establishes a clear framework for tokenized collateral and provides regulatory certainty for market participants, while also removing outdated restrictions that the GENIUS Act now supersedes.
The announcement follows earlier work under the CFTC’s “Crypto Sprint” and forms part of a broader effort to bring digital assets into mainstream markets with formal oversight.
Initial phase targets FCMs with strict reporting
During the initial phase, futures commission merchants may accept BTC, ETH, and USDC as margin collateral, provided they meet detailed weekly reporting and segregation requirements.
The CFTC stated that these conditions are designed to ensure strong risk management while allowing staff to monitor the introduction of crypto collateral in real-time.
The guidance also covers tokenized real-world assets such as U.S. Treasury securities and money-market instruments, outlining expectations around custody, valuation, legal enforceability, and operational risk.
By setting those guardrails, the CFTC pilot aims to encourage responsible adoption of tokenization without weakening investor protections.
CFTC pilot positions tokenization as U.S. advantage
Pham described the move as part of “America’s Golden Age of Innovation and Crypto,” arguing that regulated U.S. markets should become a safer alternative to offshore platforms.
She added that enabling tokenized collateral improves capital efficiency and supports more continuous trading, including over weekends.
Outdated restrictions withdrawn immediately
The CFTC also withdrew prior advisory guidance that had restricted the use of virtual-currency collateral, calling it outdated in light of recent statutory and market developments.
Officials stated today that these measures reflect extensive stakeholder input, including feedback from the CFTC Crypto CEO Forum and recommendations from the Digital Asset Markets Subcommittee.
The CFTC pilot begins immediately, with reporting requirements applying from the start of participation.
Final Thoughts
- The pilot program provides U.S. derivatives markets with a regulated pathway to accept tokenized assets as collateral.
- Clear guardrails and reporting requirements could accelerate institutional adoption while strengthening oversight.
Source: https://ambcrypto.com/bitcoin-and-ethereum-cleared-as-collateral-under-new-cftc-program/