CFTC Launches Pilot: Bitcoin, Ethereum, and USDC as Collateral
The Commodity Futures Trading Commission (CFTC) has launched a U.S. digital assets pilot program that will allow Bitcoin, Ethereum, and the stablecoin USDC to be used as collateral in regulated derivatives markets. This marks another major policy shift in how U.S. regulators approach tokenized assets. The move includes new guidance for tokenized collateral, a limited no-action framework for futures commission merchants (FCMs), and the withdrawal of legacy restrictions that the agency said are no longer relevant following passage of the GENIUS Act.
Acting CFTC Chair Caroline Pham said the program is designed to expand the use of digital assets in regulated markets while maintaining oversight and customer protections. “Americans deserve safe U.S. markets as an alternative to offshore platforms,” Pham said. “Today, I am launching a U.S. digital assets pilot program for tokenized collateral that establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting.”
Details of the Pilot Program
Under the pilot, FCMs will be temporarily allowed to accept a narrow set of digital assets like Bitcoin as customer margin. During the first three months of participation, firms must submit weekly reports to the CFTC detailing the total amount of digital assets held in customer accounts, broken out by asset and account class. Companies must also notify regulators of any material incident involving the use of digital collateral. The agency said the reporting requirement is intended to give staff real-time insight into operational risks while allowing firms controlled access to tokenized collateral.
Last week, the CFTC allowed federally regulated spot crypto trading in the U.S. for the first time, with Bitnomial set to launch its exchange next week under CFTC oversight. Pham noted that CFTC-registered venues will list spot crypto products, enabling retail and institutional traders to access spot, futures, options, and perpetuals on a single regulated platform. Alongside the pilot, the CFTC’s divisions issued formal guidance on evaluating tokenized assets within existing regulatory frameworks. The guidance emphasizes that CFTC rules are “technology neutral” and that tokenized assets should be assessed individually under existing policies. The framework applies to tokenized real-world assets such as U.S. Treasuries and money market funds, and outlines standards for legal enforceability, custody, and control.
The agency also issued a no-action position for FCMs that accept non-securities digital assets as margin, including payment stablecoins. This relief allows firms to incorporate qualifying digital assets into customer accounts while clarifying how capital and segregation rules apply under the new regime.
Industry Reaction: Regulatory Clarity Welcomed
The CFTC formally withdrew Staff Advisory No. 20-34, which previously restricted how virtual currencies could be held in customer accounts. The advisory had been in place since 2020 and had limited the operational use of digital assets as collateral. The agency said developments in digital markets and the enactment of the GENIUS Act made the advisory obsolete. Crypto and fintech firms quickly welcomed the decision, saying the changes offer long-awaited regulatory certainty.
Coinbase Chief Legal Officer Paul Grewal said the move confirms the industry’s belief that stablecoins and digital assets can reduce risk and improve efficiency in financial markets. Circle President Heath Tarbert added that the changes would reduce settlement risk and friction in derivatives trading by enabling near real-time margin settlement. Crypto.com CEO Kris Marszalek said the announcement would allow tokenized collateral to be used in U.S. markets for the first time at scale, supporting 24/7 trading in regulated derivatives products.