CFTC Launches Pilot Program Allowing Bitcoin, Ethereum, USDC as Collateral in U.S. Derivatives Markets
The Commodity Futures Trading Commission (CFTC) has launched a pilot program that permits Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC) to be used as margin collateral in U.S. derivatives markets, enabling tokenized collateral within supervised markets.
Acting Chairman Caroline Pham stated the initiative is intended to bring digital-asset activity into regulated U.S. markets and reduce dependence on offshore trading venues. For the first three months, eligible collateral is limited to BTC, ETH, and USDC.
Firms operating as Futures Commission Merchants (FCMs) under the pilot must comply with specific guardrails, including weekly reporting requirements and prompt notification of any operational issues.
Additionally, the CFTC provided new guidance on how tokenized real-world assets such as Treasury securities and money-market funds can be integrated within existing regulatory frameworks. This guidance covers segregation, custody, valuation, and operational risks and is technology-neutral.
The Market Participants Division also withdrew Staff Advisory 20-34, deeming it outdated due to advances in tokenization and legislative changes introduced by the GENIUS Act.
The pilot coincides with the CFTC's move to allow spot cryptocurrency trading on CFTC-registered exchanges, described by Pham as an unprecedented development. Among market participants, Bitnomial plans to debut leveraged spot trading alongside its established futures and options products this week.
