The US Commodity Futures Trading Commission (CFTC) has launched a pilot program to allow certain cryptos, namely Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC) and other stablecoins for payments, to be used as collateral in the US derivatives markets.
The program, that was announced by the regulator’s acting chair, Caroline Pham, is part of the CFTC’s broader mission to provide market participants with clear rules for the use of tokenized collateral.
Pham said the pilot program “establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting.”
Under the program, futures commission merchants (FCMs) who meet certain criteria are allowed to participate. These companies will be able to accept BTC, ETH and payment stablecoins as collateral for futures and swaps.
Announcement of a new pilot program (Source: CFTC)
The FCMs will also have to adhere to strict reporting obligations. This includes weekly reports regarding total customer holdings, as well as any major issues that could impact the use of crypto as collateral.
CFTC is working to bring a “Golden Age” for American innovation and crypto
In a statement, Pham emphasized the need for U.S. regulators to work toward “America’s Golden Age of Innovation and Crypto,” pointing to the recent losses suffered by users on non-U.S. crypto exchanges.
“Americans deserve safe American markets as an alternative to offshore platforms,” she said.
The guidelines provide regulatory clarity and open the door for more digital assets to be added as collateral by exchanges and brokers, in addition to U.S. Treasuries and money market funds.
— Caroline D. Pham (@CarolineDPham) December 8, 2025
Her statement refers to crypto platforms that were forced out of the US due to regulatory pressure from the Joe Biden administration and former Securities and Exchange Commission (SEC) Chairman Gary Gensler.
Since pro-crypto Donald Trump entered the White House for a second term in January, regulators and the government have eased pressure on companies operating in the digital asset space. This follows Trump’s promise to make the US the crypto capital of the world.
CFTC issues guidance for tokenized assets, withdraws outdated requirements
In addition to allowing the use of BTC, ETH, and stablecoins for payments as collateral on certain platforms, the CFTC has also issued guidance on tokenized collateral and rescinded guidance it believes is outdated.
The regulator’s updated guidance covers tokenized real-world assets (RWAs), including money market funds and U.S. Treasury securities. It also covers topics such as eligible tokenized assets, legal enforceability, segregation and control arrangements.
In the announcement, the CFTC added that it has withdrawn older guidance for 2020, which in many cases effectively blocked the use of collateral. The regulator said these guidelines are outdated, especially after the GENIUS Act, which updated federal rules around digital assets, was signed into law in July.
Crypto executives support the CFTC’s move
Several executives in the crypto space have celebrated the CFTC’s recent move.
These executives include StarkWave general counsel Katherin Kirkpatrick Bos said that the use of “tokenized collateral in the derivatives markets is HUGE.”
“Atomic settlement, transparency, automation, capital efficiency, savings. It feels abrupt, but who remembers the tokenization summit on 24/02: a ray of hope in the darkness,” she added.
Coinbase’s legal chief, Paul Grewal, is also participating applauded the CFTC for withdrawing the regulator’s Staff Advisory 20-24 guidance, which he called a “concrete ceiling on innovation.”
Meanwhile, Salman Banaei, general counsel of Plume Network said that the CFTC’s move is “a step toward using onchain infrastructure to automate settlement for the world’s largest asset class: OTC derivatives, swaps.”
Related articles:
Best Wallet – Diversify Your Crypto Portfolio
- Easy-to-use, feature-driven crypto wallet
- Get early access to upcoming token ICOs
- Multi-chain, multi-wallet, non-custodial
- Now in the App Store, Google Play
- Stake to earn native token $BEST
- 250,000+ monthly active users
#CFTC #starts #pilot #program #test #crypto #collateral