The announcement builds on a CFTC initiative from September to expand tokenized collateral use, particularly stablecoins, in derivatives markets.
Bitcoin News
The Commodity Futures Trading Commission has launched a digital assets pilot program allowing certain cryptocurrencies to serve as collateral in derivatives markets. Acting Chair Caroline Pham announced the initiative Monday.
The pilot program initially covers Bitcoin, Ethereum, and USDC, according to Pham's statement. The CFTC's lone commissioner has moved forward with defining the derivatives regulator's stance on crypto amid industry growth.
Pham stated that embracing responsible innovation ensures U.S. markets maintain world leadership and drives progress that unleashes economic growth. She noted market participants can safely deploy capital more efficiently under the new framework.
The announcement builds on a CFTC initiative from September to expand tokenized collateral use, particularly stablecoins, in derivatives markets. Last week, Pham announced Bitnominal became the first exchange to list regulator-approved spot crypto products.
Futures commission merchants involved in the crypto collateral program must file weekly reports on total digital assets held in customer accounts, including futures and cleared swaps. They must also report any significant operational or system issues affecting digital assets used as collateral.
Coinbase Chief Legal Officer Paul Grewal stated the decision confirms what the crypto industry has known: that stablecoins and digital assets can make payments faster, cheaper, and reduce risk. The CFTC withdrew a staff advisory that restricted a futures commission merchant's ability to accept virtual currencies as customer collateral.
The agency noted the GENIUS Act’s regulation of stablecoins made the previous advisory outdated after passing into law over the summer. Pham previously launched the Crypto Sprint program to clarify rules and floated the idea of piloting a digital asset regulatory sandbox in the U.S.
The pilot program represents the latest step in updating financial markets for digital asset integration. Market participants can now use approved cryptocurrencies as collateral under controlled conditions with reporting requirements designed to maintain oversight and transparency in derivatives trading.
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