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CFTC's Treasury Reform paves the way for the crypto market
CFTC approves cross-margining expansion for US Treasuries, allowing customers to offset margin requirements
Market participants say this upgrade could further support unified portfolios that include both treasuries and crypto assets.
The move reflects growing regulatory efforts to integrate cryptocurrencies into the US financial market infrastructure.
How will the new CFTC order affect crypto?
Following this change, certain clients, not just clearing members, can now offset margin requirements for Treasury futures at CME Group, the largest crypto derivatives trading platform in the United States.
This rule also applies to cash treasuries cleared at the Fixed Income Clearing Corporation of the Depository Trust and Clearing Corporation .
“Extending cross-margining for clients will enhance capital efficiency, thereby strengthening liquidity and stability in US Treasuries, one of the most important markets in the world,” said CFTC Acting Chair Caroline Pham.
Cross-margining allows companies to reduce total collateral by netting correlated positions in their portfolios. Bringing this feature from dealer balance sheets to end customers would significantly change the market structure.
Market participants see this as a practical test of risk models. This framework could further support portfolios that include Treasuries, tokenized funds, and crypto assets within a single clearing ecosystem.
These orders could have a major impact on the market for crypto derivatives traded on the CME.
If Treasuries and Treasury futures can be cross-margined on a large scale, similar frameworks could support more complex portfolios in the future. Those portfolios could also include tokenized Treasury bills and spot Bitcoin, supported by positions in CME Bitcoin and ETH futures , all under unified margin and risk controls.
Meanwhile, the timing of this order brings it amid a wider crypto regulatory effort involving both the CFTC and the Securities and Exchange Commission (SEC) .
It also highlights the SEC’s market structure and clearing reforms, where regulators are looking at how tokenized securities and digital collateral can fit into existing settlement and custody frameworks.
Notably, the Pham-led commission recently introduced the Digital Asset Collateral Pilot. This initiative allows Bitcoin, Ethereum, and USDC to be used as margin in CFTC-regulated derivatives markets .
These moves clearly demonstrate the regulators' focus on capital efficiency and risk management, especially as traditional and digital markets gradually merge.
