CFTC pilot opens path for crypto as collateral in derivative markets

The US Commodity Futures Trading Commission (CFTC) has issued updated guidance and launched a pilot program to test the use of tokenized collateral, specifically cryptocurrencies, in derivatives markets. Acting Chairman Caroline Pham announced that futures commission merchants (FCMs) participating in the pilot can accept Bitcoin, Ether, and Circle's USDC as margin collateral. This move aims to integrate crypto into regulated markets, reduce settlement frictions through instant on-chain movement, and enhance risk reduction, while establishing clear guardrails for customer asset protection through strict weekly reporting requirements for FCMs. Furthermore, the CFTC withdrew an outdated staff advisory (20-34) that restricted crypto acceptance, providing regulatory clarity that crypto executives praised as a massive step toward capital efficiency and broader adoption in the derivatives space.

(Source：Cointelegraph)