The Commodity Futures Buying and selling Fee (CFTC) on Monday launched a pilot program permitting choose digital property — bitcoin , ether and USD Coin (USDC) or different cost stablecoins — for use as collateral in U.S. derivatives markets.
This system, introduced by Performing Chairman Caroline Pham, is a part of a broader push to provide market members clear guidelines for utilizing tokenized collateral, together with tokenized variations of real-world property like U.S. Treasuries.
“Right now, I’m launching a U.S. digital property pilot program for tokenized collateral, together with bitcoin and ether, in our derivatives markets that establishes clear guardrails to guard buyer property and gives enhanced CFTC monitoring and reporting,” mentioned Pham in an announcement.
The CFTC had already begun working to let stablecoins be used as collateral for sure merchandise earlier this 12 months.
For now, this system applies solely to futures fee retailers (FCMs) that meet sure standards. These corporations can settle for BTC, ETH and cost stablecoins like USDC as margin collateral for futures and swaps, however should adjust to strict reporting and custody necessities. For the primary three months, they have to present weekly disclosures on digital asset holdings and alert the CFTC of any points.
In apply, this might imply a registered agency accepting bitcoin as collateral for a leveraged swap tied to commodities, whereas the CFTC displays the operational dangers and custody preparations behind the scenes.
The company additionally issued a no-action letter giving FCMs restricted permission to carry sure digital property in segregated buyer accounts, offered they handle dangers fastidiously. Importantly, the CFTC withdrew older steering from 2020 that had successfully blocked using crypto as collateral in lots of circumstances. That advisory is now seen as outdated, particularly after the passage of the GENIUS Act, which up to date federal guidelines round digital property.
Trade executives praised the transfer. “This main unlock is exactly what the Administration and Congress supposed the GENIUS Act to allow,” mentioned Coinbase Chief Authorized Officer Paul Grewal in an announcement shared by the CFTC.
The CFTC emphasised that its guidelines stay technology-neutral however mentioned real-world tokenized property like Treasuries should nonetheless meet enforceability, custody, and valuation requirements.
