A new CFTC pilot program opens the door for regulated tokenized collateral in U.S. derivatives markets, signaling broader acceptance of bitcoin, ether and stablecoins while removing barriers that once constrained digital asset innovation.
CFTC Launches Tokenized Collateral Pilot and Pulls Back Outdated Rules
Commodity Futures Trading Commission (CFTC) Acting Chairman Caroline D. Pham on Dec. 8 announced “the launch of a digital assets pilot program for certain digital assets, including BTC, ETH, and USDC, to be used as collateral in derivatives markets,” accompanied by new guidance and the withdrawal of outdated requirements. The action underscores the CFTC’s effort to expand responsible digital asset use within regulated U.S. markets.
Acting Chairman Pham 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.
She explained that the initiative is designed to strengthen domestic market protections following incidents on offshore platforms and to ensure Americans have access to safer, regulated alternatives. Pham said the agency is providing regulatory clarity for tokenized real world assets, including U.S. Treasuries and money market funds, by outlining how firms should address legal enforceability, segregation, custody, valuation, and operational risks when using tokenized collateral. She added that outdated requirements superseded by the GENIUS Act were withdrawn to reduce barriers that previously limited innovation.
The announcement further described how the pilot program will operate. The CFTC set initial parameters restricting Futures Commission Merchants to accepting bitcoin, ether, and USDC as margin collateral during the program’s first three months. Weekly reporting will be required to detail the amount and type of digital assets held in each customer account class, and firms must promptly notify the agency of any significant issues.
Moreover, the no-action relief issued by the Market Participants Division establishes conditions under which non-securities digital assets may be deposited as margin or residual interest, enabling the agency to monitor risk while allowing controlled experimentation. Pham said embracing responsible innovation ensures U.S. markets remain the world leader and supports economic growth by enabling participants to “put their dollars to work smarter and go further.”
