The Commodity Futures Buying and selling Fee (CFTC) on Monday launched a pilot program permitting choose digital property — bitcoin , ether and USD Coin (USDC) or different cost stablecoins — for use as collateral in U.S. derivatives markets.
This system, introduced by Appearing Chairman Caroline Pham, is a part of a broader push to present market individuals clear guidelines for utilizing tokenized collateral, together with tokenized variations of real-world property like U.S. Treasuries.
“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,” mentioned Pham in a press release.
The CFTC had already begun working to let stablecoins be used as collateral for sure merchandise earlier this yr.
For now, this system applies solely to futures fee retailers (FCMs) that meet sure standards. These corporations can settle for BTC, ETH and cost stablecoins like USDC as margin collateral for futures and swaps, however should adjust to strict reporting and custody necessities. For the primary three months, they need to present weekly disclosures on digital asset holdings and alert the CFTC of any points.
In apply, this might imply a registered agency accepting bitcoin as collateral for a leveraged swap tied to commodities, whereas the CFTC displays the operational dangers and custody preparations behind the scenes.
The company additionally issued a no-action letter giving FCMs restricted permission to carry sure digital property in segregated buyer accounts, supplied they handle dangers fastidiously. Importantly, the CFTC withdrew older steering from 2020 that had successfully blocked the usage of crypto as collateral in lots of instances. That advisory is now seen as outdated, particularly after the passage of the GENIUS Act, which up to date federal guidelines round digital property.
Trade executives praised the transfer. “This major unlock is precisely what the Administration and Congress intended the GENIUS Act to enable,” mentioned Coinbase Chief Authorized Officer Paul Grewal in a press release shared by the CFTC.
The CFTC emphasised that its guidelines stay technology-neutral however mentioned real-world tokenized property like Treasuries should nonetheless meet enforceability, custody, and valuation requirements.
