The U.S. Commodity Futures Trading Commission (CFTC) has launched an experimental project that allows the use of tokenized digital assets as margin collateral in the country's derivatives markets. This measure is considered one of the most significant regulatory changes for the cryptocurrency sector since the approval of the GENIUS Act — legislation that established rules for stablecoins in the U.S. earlier this year.
According to acting chair Caroline Pham, the goal is to integrate digital assets into U.S. regulated markets and reduce dependence on foreign platforms. In the first three months, only Bitcoin, Ethereum, and USDC (Circle's stablecoin) will be accepted as collateral.
The program sets standards for futures brokers that decide to accept digital assets as collateral from clients, including the obligation to send weekly reports and to immediately communicate any operational failures.
Guidelines for real-world assets (RWA)
The CFTC also published guidelines on how tokenized real-world assets — such as Treasury securities and money market funds — can be used within existing rules. These guidelines address aspects such as asset segregation, custody agreements, valuation criteria, and operational risks, emphasizing that the regulation is technology-neutral.
To enable the new model, the Market Participants Division revoked Technical Advisory 20-34, issued in 2020, which prohibited FCMs (futures brokers) from accepting digital assets as collateral. The agency stated that the document became outdated in light of the advancements in tokenization and the legal changes brought by the GENIUS Act.
Expansion of CFTC's activities
The GENIUS Act, passed in July, established a federal framework for digital assets not classified as securities and expanded the CFTC's powers over spot cryptocurrency markets and tokenized securities.
Coinbase's legal director, Paul Grewal, commented that the 2020 opinion acted as a 'concrete ceiling for innovation,' creating barriers that hindered progress. He pointed out that the document was based on outdated information and exceeded the limits of regulation, contradicting the objectives of the presidential working group on digital assets.
The launch of the pilot project occurs just a few days after the CFTC authorized, for the first time, spot trading of cryptocurrencies on registered brokers. Caroline Pham classified this decision as unprecedented.
Bitnomial, a Chicago-based company already regulated as a derivatives market, is expected to begin leveraged spot trading operations this week, in addition to continuing to offer its futures contracts and options.
