CFTC Launches Pilot Program Allowing Bitcoin, Ether and USD Coin as Collateral in U.S. Derivatives Markets
On December 8, 2025, the Commodity Futures Trading Commission (CFTC) announced the launch of a pilot program permitting Bitcoin, Ether, and USD Coin to be used as collateral in U.S. derivatives markets. This initiative targets approved futures commission merchants and imposes strict custody, reporting, and oversight requirements, including weekly disclosures during the first three months.
The CFTC issued a no-action letter allowing limited holdings of certain digital assets in segregated customer accounts, contingent on risk management controls. This move follows the withdrawal of its older 2020 guidance that barred crypto as collateral, reflecting updates brought by the GENIUS Act to federal asset rules.
The program signifies a broader push for clear regulations regarding tokenized collateral and may extend to tokenized real-world assets like U.S. Treasuries. Established asset standards include enforceability, custody, and valuation measures. The initiative aims to improve monitoring and asset protection while providing guardrails for tokenized collateral in derivatives markets.
Current coverage under the program includes Bitcoin (BTC), Ether (ETH), and stablecoins such as USD Coin (USDC) as margin collateral for futures and swaps, applying technology-neutral rules. Industry response has been positive; Coinbase Chief Legal Officer Paul Grewal stated that the program aligns with the GENIUS Act’s intent.
