US Regulator Introduces Framework Allowing Bitcoin, Ether and USDC for Margin Use
The US Commodity Futures Trading Commission (CFTC) has launched a landmark pilot program that formally opens the door for cryptocurrencies to be used as collateral in regulated derivatives markets. The move marks one of the most significant steps yet toward integrating digital assets into mainstream financial infrastructure.
Collateral is a core safeguard in derivatives trading, ensuring traders can cover potentiial losses. The CFTC’s new initiative introduces a controlled environment to test how digital assets perform in this role under strict oversight.
Under the program, futures commission merchants (FCMs) may now accept Bitcoin, Ether, and USDC as margin collateral. Acting chair Caroline Pham emphasized that the pilot includes clear guardrails, requiring participating firms to file weekly reports on customer holdings and promptly flag any issues that could affect the safe use of crypto collateral.
The effort is designed to reduce settlement friction, strengthen customer protections and expand the range of acceptable collateral in highly regulated markets.
Updated Regulatory Guidance for Tokenized Assets
Alongside the pilot, several CFTC divisions released updated guidance on tokenized assets used in futures and swap markets. This includes requirements for legal enforceability, segregation and control of tokenized collateral, and eligibility criteria for assets such as tokenized Treasury money-market funds.
The agency also issued a no-action position enabling the use of payment stablecoins as customer margin collateral. A prior advisory restricting crypto collateral Staff Advisory 20-34 — has been withdrawn, deemed outdated amid recent legislative and regulatory developments.
Industry leaders called the shift a major step toward broader market modernization. Executives highlighted benefits such as atomic settlement, transparency, and capital efficiency—all key advantages of tokenized collateral systems.
The pilot signals growing regulatory acceptance of on-chain infrastructure in markets that handle trillions of dollars in derivatives activity.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.