Key Insights
- The CFTC accepts tokenized assets as collateral in U.S. derivatives markets.
- FCMs can now use Bitcoin, Ethereum, and USDC as margin under the pilot program.
- The move is based on a new regulation under the GENIUS Act.
The Commodity Futures Trading Commission has also introduced a pilot program that allows tokenized digital assets to be used as margin collateral on U.S. derivatives markets. The move represents a structural shift in federal oversight of crypto, arriving months after the GENIUS Act expanded the agency’s authority over spot markets and tokenized instruments.
Pilot Program Opens Door to Broader Collateral Options
Under the new program, firms regulated by the CFTC can accept Bitcoin, Ethereum, USDC, and certain tokenized real-world assets as collateral, provided they meet the custody and valuation requirements.
Acting Chair Caroline D. Pham said the campaign is designed to support controlled innovation while reinforcing long-standing market protections.
Pham described the pilot as the agency’s first formal step toward allowing digital assets inside its derivatives ecosystem. She said participating firms must meet strict reporting obligations, including weekly disclosures of customer asset holdings and operational issues.
The oversight structure provides the commission with deeper visibility into how tokenized products are traded within derivatives markets. The guidance also confirms the CFTC’s technology-neutral stance.
Regulatory Barriers Lifted as CFTC Withdraws 2020 Advisory
According to the press release, the regulatory guidance addresses segregation, custody arrangements, valuation standards, and operational risks, and reiterates that the rules remain technology-neutral. To prepare the ground for the pilot, the Market Participants Division withdrew Staff Advisory 20-34, a 2020 memo that restricted futures commission merchants from accepting digital assets as collateral. Regulators stated that the advisory no longer accurately reflected current market conditions, particularly following the legal revisions introduced by the GENIUS Act.
The bill, which passed in July, established a federal framework for non-securities digital assets and expanded the CFTC’s jurisdiction over certain spot-market functions. It also supported the agency’s authority to supervise tokenized collateral arrangements.
CFTC Advances New Crypto Market Structure
The pilot follows a separate decision allowing spot crypto trading on CFTC-registered venues for the first time. Bitnomial, a Chicago-based derivatives platform, will introduce leveraged spot trading this week alongside its existing futures and options. The move extends the agency’s involvement beyond traditional derivatives into a more direct role in overseeing digital-asset markets.
The commission said the pilot will remain under active evaluation. Data collected through the reporting process will shape future decisions on whether tokenized collateral becomes a permanent feature of U.S. derivatives markets.
Furthermore, Coinbase Chief Legal Officer Paul Grewal stated that the shift acknowledges the practical role digital assets can play in settlement and payment systems. Industry participants view the pilot as a signal that regulated markets may increasingly integrate blockchain-based instruments over time.
