The U.S. derivatives trading agency outlines new precautionary measures, guidelines, and no-action relief to permit the use of tokenized assets, including Bitcoin and Ether, in regulated derivatives markets in the United States.
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The U.S. Commodity Futures Trading Commission (CFTC) has taken one of its largest steps yet toward integrating cryptocurrencies into regulated finance by launching a pilot program allowing the use of Bitcoin, Ether, and USDC as collateral in derivatives markets.
Acting Chair Caroline Pham announced the program in Washington, along with new guidelines regarding tokenized collateral and the withdrawal of outdated rules that no longer comply with the GENIUS Act.
The pilot program represents a shift towards integrating digital assets into futures and swaps markets, providing regulators with real-time visibility into the performance of tokenized collateral.
The U.S. derivatives regulator paves the way for tokenized assets to support trades.
Pham stated that the initiative aims to provide U.S. traders with safer venues overseen by the Commodity Futures Trading Commission (CFTC) following significant losses on offshore platforms. She added that the agency "is launching a U.S. pilot program for digital assets as tokenized collateral, including Bitcoin and Ether," with safeguards to protect customers and more stringent oversight.
The three divisions of the Commodity Futures Trading Commission (CFTC) also issued guidance confirming that tokenized assets can be evaluated under the current framework. The guidance covers tokenized assets from the real world, such as U.S. Treasury bonds and money market funds, addressing custody and segregation issues, valuation haircuts, and operational risks.
The agency granted an exemption from enforcement actions (no-action relief) to futures commission merchants (FCMs) wishing to accept certain digital assets that are not securities as margin for customers.
The pilot program begins with Bitcoin, Ether, and USDC, as the CFTC gains new visibility into the market.
In the first three months, futures commission merchants (FCMs) can only accept BTC, ETH, and USDC. They must provide weekly reports on held amounts and notify the agency of any significant issues, giving the Commodity Futures Trading Commission (CFTC) early insight into market behavior without hindering adoption.
In a parallel move, the Commodity Futures Trading Commission (CFTC) withdrew a 2020 advisory that restricted the use of virtual currencies as collateral, stating it no longer reflects current market conditions after years of evolution and the enactment of the GENIUS Act.
Cryptocurrency executives describe the CFTC's guidance as a significant milestone for innovation in the U.S. market.
Cryptocurrency companies welcomed this shift:
* Paul Grewal, Chief Legal Officer at Coinbase, stated that the decision confirms that digital assets can make payments faster and cheaper.
* Heath Tarbert, head of Circle, stated that regulated stablecoins will reduce settlement friction and support round-the-clock trading.
* Kris Marszalek, CEO of Crypto.com, described the guidance as a "significant milestone," linking it to President Trump's goal of making the United States the "crypto capital of the world."
* Jack McDonald of Ripple added that recognizing tokenized assets as qualified margin enhances capital efficiency and bolsters U.S. leadership in financial innovation.
The Commodity Futures Trading Commission (CFTC) stated that the pilot program and guidance reflect the recommendations of the Subcommittee on Digital Asset Markets and feedback from industry forums. Bitcoin, Ether, and USDC are set to play a more formal role in U.S. derivatives markets while regulators monitor the performance of tokenized collateral in real-world scenarios.
