The Commodity Futures Trading Commission (CFTC) has announced the initiation of a pilot program in the U.S. aimed at permitting the use of Bitcoin, Ethereum, and the stablecoin USDC as collateral within regulated derivatives markets. This development represents a significant policy shift in the manner in which U.S. regulators engage with tokenized assets.

This initiative encompasses new guidance regarding tokenized collateral, a limited no-action framework for futures commission merchants (FCMs), as well as the removal of legacy restrictions deemed irrelevant in the wake of the passage of the GENIUS Act.

Acting CFTC Chair Caroline Pham highlighted that the program seeks to broaden the utilization of digital assets in regulated markets while ensuring oversight and customer protections are upheld.

“Americans deserve safe U.S. markets as an alternative to offshore platforms,” stated Pham. “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.”

Bitcoin and Other Cryptocurrencies in the Pilot

Under the framework of this pilot program, FCMs will be temporarily authorized to accept a limited range of digital assets, including Bitcoin, as customer margin, as per the CFTC’s announcement.

During the initial three months of participation, firms are required to submit weekly reports to the CFTC detailing the total volume of digital assets held in customer accounts, categorized by asset and account class.

Furthermore, firms must inform regulators of any significant incidents involving the use of digital collateral.

This reporting requirement is designed to provide the CFTC with real-time insights into operational risks while allowing firms controlled access to tokenized collateral.

Last week, the CFTC also sanctioned federally regulated spot cryptocurrency trading in the U.S. for the first time, with Bitnomial set to unveil its exchange next week under CFTC oversight.

According to Pham, CFTC-registered platforms will offer spot crypto products, permitting retail and institutional traders to engage in spot, futures, options, and perpetuals on a single regulated platform.

In conjunction with the pilot program, the CFTC’s Market Participants Division, Division of Market Oversight, and Division of Clearing and Risk have issued formal guidance on the evaluation of tokenized assets within existing regulatory frameworks.

The guidance underscores the “technology neutral” nature of CFTC rules, indicating that tokenized assets should be assessed individually under current policies as opposed to being classified as a distinct asset class.

This framework is applicable 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 has also issued a no-action position for FCMs that accept non-securities digital assets as margin, including payment stablecoins.

This relief permits firms to incorporate qualifying digital assets into customer accounts while clarifying the application of capital and segregation rules under the new regulatory environment.

Positive Reception from the Crypto Industry

The CFTC has formally retracted Staff Advisory No. 20-34, which previously limited the methods by which virtual currencies could be maintained in customer accounts. This advisory had been effective since 2020 and had constrained the operational use of digital assets as collateral.

The agency affirmed that developments in digital markets and the enactment of the GENIUS Act rendered the advisory obsolete.

Responses from crypto and fintech firms have been overwhelmingly positive, with stakeholders expressing appreciation for the long-awaited regulatory clarity.

Coinbase Chief Legal Officer Paul Grewal noted that this decision confirms the industry’s conviction that stablecoins and digital assets can enhance risk mitigation and operational efficiency in financial markets, as stated in a CFTC announcement.

Circle President Heath Tarbert also remarked that the changes would alleviate settlement risks and friction within derivatives trading by enabling near real-time margin settlements.

Crypto.com CEO Kris Marszalek emphasized that the announcement will facilitate the use of tokenized collateral in U.S. markets at unprecedented scale, thereby supporting continuous trading in regulated derivatives products.

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