.png){kind=logo}
The US Commodity Futures Trading Commission launched a pilot that allows Bitcoin, Ether, and USDC to serve as collateral in regulated derivatives markets, as the agency seeks real-time insight into tokenized assets and updates rules to align with the GENIUS Act while removing older guidance that restricted virtual currencies in margin systems.
Acting Chairman Caroline Pham introduced the pilot in Washington. She said the program creates guardrails for customer protection. She also said it supports tighter reporting and direct CFTC oversight.
The pilot applies to futures commission merchants that meet strict criteria. These firms can now accept Bitcoin, Ether, and USDC as margin collateral for futures and swaps. The terms create a controlled environment for early activity.
Participating firms must give weekly reports during the first three months. These reports cover digital asset holdings and any issues. The disclosures help regulators track custody risks and operational behavior.
The CFTC already began work earlier this year to enable limited stablecoin collateral. The new program expands that foundation. It introduces tokenized assets directly into supervised markets. It also lays the groundwork for future adoption under federal rules.
The agency issued a no-action letter to support the rollout. Futures commission merchants can now hold some digital assets in segregated accounts. They must follow risk controls and custody standards. This relief enables early use without delays.
The CFTC also released guidance from three divisions. The guidance states that tokenized assets can fit into current frameworks. It covers custody, segregation, valuation haircuts, and operational risks. It applies to tokenized Treasuries and money market funds. It also covers non-securities digital assets used as collateral.
The CFTC withdrew a 2020 advisory that blocked many forms of crypto collateral. The agency said market conditions had changed since that period. The GENIUS Act also created new expectations for digital assets.
The withdrawal allows the updated framework to function without conflict. It also supports broader participation inside regulated venues. Firms now have more explicit rules for using tokenized collateral.
Industry leaders reacted to the shift. Coinbase Chief Legal Officer Paul Grewal said the pilot matches the intent of the GENIUS Act. Circle President Heath Tarbert said that supervised stablecoins can reduce settlement frictions. Crypto.com CEO Kris Marszalek linked the guidance to national goals for digital asset leadership.
Ripple’s Jack McDonald said the recognition of tokenized margin can improve capital efficiency. Their statements show interest in regulated expansion. The CFTC said the pilot also reflects recommendations from the Digital Asset Markets Subcommittee. Feedback from industry forums shaped the final structure.
Approved firms can accept only Bitcoin, Ether, and USDC initially. They must report holdings each week. They must also alert the agency of any significant issues.
A registered firm could accept Bitcoin as margin for a leveraged commodities swap. The CFTC would monitor custody controls and operational workflows. These steps create direct visibility into real-world activity.
The pilot raises one central question: can tokenized collateral function safely and efficiently within a fully supervised US derivatives system?
The results will guide future policy. The CFTC maintains technology neutrality across assets. Tokenized treasuries and similar instruments must still meet enforceability and custody standards. These conditions will define the next phase of digital asset collateral in the United States.
Also Read: Crypto News Today: Trump to Nominate Michael Selig as Next CFTC Chief
The CFTC pilot introduces Bitcoin, Ether, and USDC into regulated derivatives markets through strict oversight and updated rules that follow the GENIUS Act. The move gives firms a more straightforward path for tokenized collateral while offering regulators real-time insight. Readers should watch how market behavior shapes the next phase of adoption.
