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 payment stablecoins, to be used as collateral in US derivatives markets.
The program, which was announced by the regulator’s Acting Chair Caroline Pham, is part of the CFTC’s broader mission to give market participants clear rules for using tokenized collateral.
Pham stated that the pilot program “establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting.”
Under the program, futures commission merchants (FCMs) that meet certain criteria will be permitted to participate. These firms will be able to accept BTC, ETH, and payment stablecoins as collateral for futures and swaps.
The FCMs will also be required to adhere to strict reporting requirements. This includes weekly reports related to total customer holdings as well as any significant issues that may affect the use of crypto as collateral.
CFTC Working To Bring “Golden Age” For US Innovation And Crypto
In a statement, Pham emphasized the necessity for US regulators to work towards “America’s Golden Age of Innovation and Crypto,” highlighting the recent losses that users have experienced on non-US crypto exchanges.
“Americans deserve safe US markets as an alternative to offshore platforms,” she remarked.
The guidance provides regulatory clarity and opens 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 alludes to crypto platforms that were compelled to operate outside the US due to regulatory pressure from the Joe Biden administration and former Securities and Exchange Commission (SEC) Chair Gary Gensler.
Since pro-crypto Donald Trump entered the White House for a second term in January, regulators and the government have eased the pressure on companies operating in the digital asset space. This follows Trump’s commitment to make the US the crypto capital of the world.
CFTC Issues Guidance On Tokenized Assets, Withdraws Outdated Requirements
In addition to permitting BTC, ETH, and payment stablecoins to be used as collateral on select platforms, the CFTC has also issued guidance on tokenized collateral and withdrawn guidance that it deems outdated.
The updated guidance from the regulator covers tokenized real-world assets (RWAs), which include US Treasury money market funds and securities. It also addresses topics such as eligible tokenized assets, legal enforceability, segregation, and control arrangements.
In its announcement, the CFTC stated that it has withdrawn older guidance from 2020 that had effectively prohibited the use of collateral in many situations. The regulator indicated that this guidance is outdated, particularly after the GENIUS Act, which updated the federal rules surrounding digital assets, was signed into law in July.
Crypto Executives Support The CFTC’s Move
Several executives in the crypto industry have welcomed the CFTC’s recent action.
Among these executives is StarkWave general counsel Katherin Kirkpatrick Bos, who stated that the use of “tokenized collateral in the derivatives markets is MASSIVE.”
“Atomic settlement, transparency, automation, capital efficiency, savings. Feels abrupt but who recalls the tokenization summit in 2/24, a glimmer of hope in the darkness,” she added.
Coinbase’s legal chief Paul Grewal also applauded the CFTC for withdrawing the regulator’s Staff Advisory 20-24 guidance, which he characterized as a “concrete ceiling on innovation.”
Meanwhile, Plume Network general counsel Salman Banaei commented that the CFTC’s move “is a step toward the use of onchain infra to automate settlement for the biggest asset class in the world: OTC derivatives, swaps.”