CFTC Launches Crypto Pilot Program Greenlighting Use of Bitcoin, Ethereum and USDC as Collateral in Derivatives Markets

The Commodity Futures Trading Commission is rolling out a pilot program that clears the way for certain digital assets including Bitcoin ( BTC ), Ethereum ( ETH ) and USD Coin (USDC) to be used as collateral in US derivatives markets.

CFTC Acting Chair Caroline D. Pham says  the initiative reflects growing adoption of digital assets inside regulated financial systems while keeping what she called “appropriate guardrails” in place.

“Under my leadership this year, the CFTC has led the way forward into America’s Golden Age of Innovation and Crypto. This imperative has never been more important given recent customer losses on non-U.S. crypto exchanges. Americans deserve safe U.S. markets as an alternative to offshore platforms, and that’s why last week I announced that spot crypto can now be traded on CFTC registered exchanges.

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 CFTC is also providing regulatory clarity through tokenized collateral guidance for real world assets like U.S. Treasuries, and withdrawing CFTC requirements that are now outdated under the GENIUS Act. As I’ve said before, embracing responsible innovation ensures that U.S. markets are the world leader, and drives progress that will unleash U.S. economic growth because market participants can safely put their dollars to work smarter and go further.”

The move includes new guidance from three CFTC divisions outlining how tokenized assets can be used in futures and swaps.

Regulators emphasized that CFTC rules are technology-neutral and that tokenized assets, such as Treasury securities or money-market fund shares, should be evaluated individually under existing frameworks.

The guidance addresses issues such as custody, valuation, legal enforceability and operational risk.

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