The U.S. Commodity Futures Trading Commission has introduced a pilot program permitting bitcoin, ether and USD Coin as collateral in derivatives markets. Acting Chair Caroline Pham announced the initiative, emphasizing protections for customer assets. The program targets approved futures commission merchants with rigorous oversight requirements.
The Commodity Futures Trading Commission (CFTC) launched a pilot program on Monday, enabling select digital assets including bitcoin (BTC), ether (ETH) and USD Coin (USDC) or other payment stablecoins to serve as collateral in U.S. derivatives markets. This first-of-its-kind initiative, unveiled by Acting Chairman Caroline Pham, aims to provide clear rules for tokenized collateral while incorporating tokenized versions of real-world assets like U.S. Treasuries.
Pham stated, “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 program applies exclusively to futures commission merchants (FCMs) that satisfy specific criteria. These firms may accept BTC, ETH and payment stablecoins as margin for futures and swaps, subject to stringent custody, reporting and oversight mandates.
For the initial three months, participating FCMs must submit weekly disclosures on their digital asset holdings and notify the CFTC of any issues. This setup allows, for instance, a registered firm to use bitcoin as collateral for a leveraged commodity swap, with the agency overseeing operational risks and custody.
Complementing the pilot, the CFTC issued a no-action letter permitting FCMs to hold certain digital assets in segregated customer accounts, provided risks are managed appropriately. The agency also rescinded its 2020 guidance, which had restricted crypto use as collateral and is now deemed outdated following the GENIUS Act's passage. That legislation updated federal digital asset regulations.
Industry response has been positive. Coinbase Chief Legal Officer Paul Grewal noted, “This major unlock is precisely what the Administration and Congress intended the GENIUS Act to enable.” The CFTC maintains technology-neutral rules, requiring tokenized real-world assets like Treasuries to adhere to enforceability, custody and valuation standards.
This development builds on earlier CFTC efforts to allow stablecoins as collateral for specific products, signaling a cautious integration of digital assets into traditional derivatives trading.