The US CFTC launches a pilot program, allowing Bitcoin, Ethereum, and USDC to be used as collateral in the derivatives market.

The U.S. Commodity Futures Trading Commission (CFTC) has announced the launch of a pilot program allowing BTC, ETH, and USDC to be used as collateral in regulated derivatives markets. The new regulations not only replace outdated restrictive guidance, but also signify that digital assets are being integrated into the traditional financial collateral system. Once implemented, futures commission merchants (FCM) will be able to accept cryptocurrencies as margin under a rigorous framework.

CFTC Pilot Program: BTC, ETH, USDC Become Derivatives Collateral

Acting CFTC Chair Caroline Pham announced the launch of the digital asset pilot program on Monday, opening the first phase to BTC, ETH, and Circle’s USDC stablecoin. The goal is to safely test the viability of crypto assets as collateral in derivatives markets such as futures.

Pham emphasized that for the U.S. to maintain its leadership in financial innovation, “responsible innovation” must operate within a clear regulatory framework, enabling market participants to use capital safely and appropriately.

Paul Grewal, Chief Legal Officer at Coinbase, praised the move as “removing a ceiling that hinders innovation,” and said the CFTC’s decision proves that digital assets can lower costs and risks in payments and settlement.

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Brand New Regulatory Framework: Tokenized Treasuries Can Also Be Used as Collateral?

As part of the program, participating futures commission merchants (FCM) are required to comply with strict oversight mechanisms, including weekly reporting of the total amount of crypto assets held in customer accounts and disclosure of any operational failures or system issues that could affect the security of collateral.

In the same statement, the CFTC also released updated guidance, initially defining the legal enforceability, asset segregation requirements, and risk management standards for tokenized assets in the futures market. “Tokenized U.S. Treasuries, money market funds (MMF), and payment stablecoins” are initially included as acceptable types of collateral.

The new policy further provides a “no-action position (no-action position)” to FCMs, allowing them to use the aforementioned digital assets as customer margin under compliant conditions.

At the same time, the CFTC has revoked “Staff Advisory 20-34,” a regulation that previously imposed many restrictions on crypto asset collateral, stating the document is now outdated due to the passage of the GENIUS Act and no longer applicable to today’s market environment.

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From Tokenization to Collateral: Crypto Successfully Connects to Mainstream Finance

This CFTC reform not only opens the doors of Wall Street to BTC, ETH, and USDC, but also paves the way for more tokenized assets in the future.

Pham stated that the regulatory clarity provided by the new guidance will allow exchanges and brokers to add more asset classes in the future, with a priority on tokenized assets. Circle CEO Heath Tarbert pointed out that this will reduce settlement friction, lower risk, and improve market efficiency.

As the CFTC’s role in crypto regulation becomes increasingly clear, the compliance framework for derivatives, margin, and market infrastructure is gradually taking shape, and crypto assets are steadily integrating into the traditional financial system.

This article, “U.S. CFTC launches pilot program, opens up Bitcoin, Ethereum, USDC as derivatives market collateral,” first appeared on Chainnews ABMedia.