Key Takeaways
CFTC launches a pilot letting approved firms use BTC, ETH, and certain stablecoins as derivatives collateral.
Participants face strict oversight, including weekly reporting and enhanced risk controls.
Updated rules replace outdated restrictions, aiming to support safer, modernized U.S. digital-asset markets.
CFTC Modernizes Collateral Rules for Digital Assets
The U.S. Commodity Futures Trading Commission (CFTC) has started a new pilot program that will allow bitcoin (BTC), ether (ETH), and stablecoins like USDC to be used as collateral in derivatives markets. This means that certain approved firms will now be able to use these digital assets the same way they use cash or other traditional collateral when trading futures or swaps.
The program was announced by CFTC Acting Chair Caroline Pham, who has been pushing for clearer rules for digital assets. She says the goal is to modernize financial markets and make them safer for Americans. According to Pham, this program will create protections for customers and allow the CFTC to closely monitor how digital assets are used.
She stated:
“Today, I am launching a U.S. digital assets pilot program for tokenized collateral, including bitcoin and ether, in our derivatives markets that establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting.”
Only Futures Commission Merchants (FCMs)—special firms registered to handle futures market funds—can take part in the program, allowing them to accept BTC, ETH, and certain stablecoins as collateral.
In exchange, they must follow strict rules. For the first three months, they need to report how much digital assets they hold every week and must inform the CFTC if anything goes wrong.
As part of this move, the CFTC has updated its rules for tokenized collateral.
It also removed older restrictions that previously made it harder to use bitcoin as margin. A no-action letter was issued to give firms permission to hold digital assets in customer accounts, as long as they manage risks properly.
These changes follow the GENIUS Act, a law that updated federal rules for digital asset custody. Because of this, the CFTC decided to withdraw an old rule from 2020 that limited how bitcoin and digital assets could be used as collateral.
The agency believes past rules are now outdated due to changes in the market. Pham said the United States needs to embrace responsible digital assets innovation if it wants to remain a global leader.
“Americans deserve safe U.S. markets as an alternative to offshore platforms,” she said, adding that responsible innovation can “unleash U.S. economic growth because market participants can safely put their dollars to work smarter and go further.”
The CFTC also released guidance explaining how tokenized assets should be reviewed. The agency stressed that its rules are technology-neutral, meaning digital assets won’t get special treatment, and that they must meet the same standards as other assets.
Tokenized forms of real-world assets, like U.S. Treasury bills or money market funds, will be judged based on custody, legal enforceability, valuation, and risk management.
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