The Commodity Futures Trading Commission (CFTC) on Monday launched a pilot program to allow some digital assets (Bitcoin). ,ether USD Coin (USDC) or other payment stablecoin — used as collateral in the U.S. derivatives market.
The program, announced by Acting Chairman Caroline Pham, is part of a broader effort to give market participants clear rules on the use of tokenized collateral, including tokenized versions of real-world assets like U.S. Treasuries.
“Today, I am launching a U.S. digital asset pilot program for tokenized collateral such as Bitcoin and Ether in our derivatives markets that establishes clear guardrails to protect client assets and provides enhanced CFTC oversight and reporting,” Pham said in a statement.
The CFTC had already begun work earlier this year to allow stablecoins to be used as collateral for certain products.
Currently, the program only applies to futures trading merchants (FCMs) that meet certain criteria. These companies can accept clearing stablecoins such as BTC, ETH, and USDC as margin collateral for futures and swaps, but must follow strict reporting and custody requirements. You must disclose your digital asset holdings weekly for the first three months and alert the CFTC of any problems.
In practice, this could mean that registered companies accept Bitcoin as collateral for commodity-related leveraged swaps, while the CFTC oversees operational risks and custody arrangements behind the scenes.
The agency also issued a no-action letter giving the FCM limited permission to hold certain digital assets in segregated customer accounts, provided the risks are carefully managed. Importantly, in 2020, the CFTC rescinded old guidance that effectively blocked the use of cryptocurrencies as collateral in many cases. This recommendation is now considered outdated, especially after the passage of the GENIUS Act, which updates federal regulations regarding digital assets.
Industry executives praised the move. “This massive unlock is exactly what the administration and Congress intended to enable with the GENIUS Act,” Coinbase Chief Legal Officer Paul Grewal said in a statement shared with the CFTC.
The CFTC emphasized that its rules remain technology-neutral, but said real-world tokenized assets like U.S. Treasuries must still meet enforceability, custody, and valuation standards.
