CFTC Launches Pilot Program Allowing Tokenized Digital Assets as Collateral in US Derivatives Markets
The Commodity Futures Trading Commission (CFTC) has initiated a pilot program allowing tokenized digital assets, including Bitcoin (BTC), Ether (ETH), and USD Coin (USDC), to be used as collateral in supervised US derivatives markets. The program starts with BTC, ETH, and USDC accepted as collateral during the first three months.
This pilot is accompanied by new guidance on tokenized collateral and the withdrawal of a 2020 advisory that had previously restricted the use of crypto collateral, aligning regulatory practices with the GENIUS Act. The updated guidance confirms that tokenized assets, encompassing tokenized real-world assets such as US Treasuries and money market funds, can be evaluated under the existing regulatory framework. It also addresses key areas including custody, segregation, valuation haircuts, and operational risks.
Additionally, the CFTC has granted no-action relief for futures commission merchants (FCMs) to accept certain non-securities digital assets as customer margin. FCMs participating in the pilot must submit weekly reports detailing collateral amounts and notify the CFTC of any significant issues.
The pilot aims to provide regulators with real-time visibility into tokenized collateral performance while offering safer, CFTC-supervised venues for US traders, especially after previous offshore losses. Acting Chair Caroline Pham announced the program, emphasizing the inclusion of appropriate guardrails to protect customers and enable tighter monitoring.
This initiative follows recommendations from the Digital Asset Markets Subcommittee and industry forums, reflecting a broader effort to integrate digital assets into US futures and swaps markets. Industry leaders have reacted positively, highlighting benefits such as faster payments, reduced settlement frictions, and enhanced support for US leadership in financial innovation.
