CFTC clears path for ETH, Bitcoin and USDC to be used as collateral in derivatives markets

The Commodity Futures Trading Commission (CFTC), led by Acting Chair Caroline Pham, has introduced a "digital assets pilot program" that permits specific cryptocurrencies—initially Bitcoin, ETH, and USDC—to be used as collateral in derivatives markets. Pham stated this move supports responsible innovation to keep U.S. markets globally competitive. This initiative builds upon previous CFTC efforts, including expanding the use of tokenized collateral and clarifying crypto rules through the "Crypto Sprint" program. As part of the program, Futures Commission Merchants (FCMs) must file weekly reports on digital assets held for customers and report any system failures affecting the collateral. Additionally, the CFTC withdrew an outdated staff advisory restricting the acceptance of virtual currencies as customer collateral, citing the passage of the GENIUS Act regulating stablecoins. Coinbase Chief Legal Officer Paul Grewal praised the decision, noting that digital assets can enhance payment speed and reduce risk.

(Source：The Block)