The U.S. Commodity Futures Trading Commission (CFTC) has launched a new pilot program that allows regulated firms to use Bitcoin, Ethereum, and USDC as collateral in derivatives trading. The initiative marks a shift from the long-standing practice of relying solely on fiat currencies and traditional securities for margin requirements.
The program was announced by Acting Chairman Caroline D. Pham and applies to a limited group of approved Futures Commission Merchants (FCMs). These firms will now be permitted to accept certain digital assets as margin for futures and swaps under strict regulatory supervision.
Alongside the pilot, the CFTC issued new guidance on tokenized collateral and formally withdrew several outdated regulatory requirements following the adoption of the GENIUS Act.
Strict Oversight and Custody Requirements
Participating firms must comply with enhanced standards for:
– Asset custody and segregation
– On-chain storage and transfer monitoring
– Weekly reporting during the first three months
– Immediate disclosure of any operational or security issues
Digital collateral must be tracked separately from traditional assets, and all movements must remain fully transparent to the regulator. For now, only firms that meet specific risk-management and reporting criteria will be admitted into the program.
Acting Chairman Pham stated:
“Under my leadership this year, the CFTC has led the way forward into America’s Golden Age of Innovation and Crypto. This imperative has never been more important given recent customer losses on non-U.S. crypto exchanges. Americans deserve safe U.S. markets as an alternative to offshore platforms, and that’s why last week I announced that spot crypto can now be traded on CFTC registered exchanges.“
Stablecoins and Digital Assets Gain Regulatory Recognition
In its official statement, the CFTC noted that the new framework reflects what the crypto industry has argued for years — that digital assets and stablecoins can improve payment efficiency, reduce costs, and lower settlement risks when used within a regulated structure.
Industry players including Coinbase and Circle publicly welcomed the initiative, calling it a meaningful step toward recognizing crypto assets as a functional part of the financial system rather than a separate speculative market.
GENIUS Act Sets the Legal Foundation
The pilot program builds on the GENIUS Act passed earlier this year, which established the federal framework for regulating U.S. payment stablecoins by defining who can issue them, requiring full liquid reserves, enforcing AML/KYC compliance, and mandating regular public disclosures.
The broader goal is to support innovation while protecting consumers and safeguarding financial stability.
Why This Matters
Allowing BTC, ETH, and USDC to serve as collateral inside regulated U.S. derivatives markets represents a major step toward deep crypto integration into traditional finance. It also signals a clear policy direction: digital assets are increasingly being treated as legitimate financial infrastructure rather than fringe instruments.
While the pilot is limited in scope, it sets a regulatory precedent that could reshape how crypto is used across U.S. capital markets in the years ahead.
