Acting CFTC Chair Caroline Pham announced on December 8th the launch of a US digital assets pilot program. This initiative allows certain cryptocurrencies, including Bitcoin, Ether, and USDC, to be used as tokenized collateral in derivatives markets, as stated in her official statement and a subsequent post on X.
Pilot Program Details and Regulatory Framework
Under the pilot program, Futures Commission Merchants (FCMs) are permitted to accept BTC, ETH, and USDC as customer margin collateral for an initial three-month period. During this time, the CFTC will monitor market activity. The program applies technology-neutral rules that also encompass tokenized real-world assets such as US Treasuries and money market funds. The Commission has withdrawn Advisory 20-34, deeming it outdated in light of new legislation, including the GENIUS Act. This move is framed as a significant milestone for integrating digital assets into regulated markets with appropriate safeguards.
Industry Reception and Future Outlook
Pham emphasized that the program is designed to enhance the protection of American users trading with registered CFTC brokers and to provide a safer alternative to offshore trading venues. Industry leaders from firms such as Circle, Crypto.com, and Ripple have welcomed the increased regulatory clarity, potential for faster settlement times, and the 24/7 trading capabilities that the pilot could support. Market participants will be closely observing the speed at which FCMs adopt tokenized collateral, whether additional assets will be incorporated into the framework beyond BTC, ETH, and USDC, and how the pilot program ultimately shapes future CFTC guidance on tokenized markets.
Official Announcement
Caroline D. Pham (X post): Link to X Post