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Crypto NEWS > Blog > Bitcoin > CFTC Lets Bitcoin Be Collateral In Derivatives Pilot Program
Bitcoin

CFTC Lets Bitcoin Be Collateral In Derivatives Pilot Program

yangzeph4@gmail.com
Last updated: December 8, 2025 10:51 pm
yangzeph4@gmail.com Published December 8, 2025
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The Commodity Futures Trading Commission announced the launch of a U.S. digital assets pilot program that will allow bitcoin, ethereum and the stablecoin USDC to be used as collateral in regulated derivatives markets, marking another major policy shift in how U.S. regulators approach tokenized assets.

The move includes new guidance for tokenized collateral, a limited no-action framework for futures commission merchants (FCMs), and the withdrawal of legacy restrictions that the agency said are no longer relevant following passage of the GENIUS Act.

Acting CFTC Chair Caroline Pham said the program is designed to expand the use of digital assets in regulated markets while maintaining oversight and customer protections.

“Americans deserve safe U.S. markets as an alternative to offshore platforms,” Pham said in a statement. “Today, I am launching a U.S. digital assets pilot program for tokenized collateral that establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting.”

Bitcoin and other crypto as a pilot

Under the pilot, FCMs will be temporarily allowed to accept a narrow set of digital assets like Bitcoin as customer margin, according to a CFTC announcement. 

During the first three months of participation, firms will be required to submit weekly reports to the CFTC detailing the total amount of digital assets held in customer accounts, broken out by asset and account class. 

Companies must also notify regulators of any material incident involving the use of digital collateral.

The agency said the reporting requirement is intended to give staff real-time insight into operational risks while allowing firms controlled access to tokenized collateral.

Last week, the CFTC allowed federally regulated spot crypto trading in the U.S. for the first time, with Bitnomial set to launch its exchange next week under CFTC oversight. 

Pham said CFTC-registered venues will list spot crypto products, enabling retail and institutional traders to access spot, futures, options, and perpetuals on a single regulated platform.

Alongside the pilot program, the CFTC’s Market Participants Division, Division of Market Oversight and Division of Clearing and Risk issued formal guidance on how tokenized assets should be evaluated within existing regulatory frameworks.

The guidance emphasizes that CFTC rules are “technology neutral” and that tokenized assets should be assessed individually under existing policies rather than treated as a separate asset class.

The framework applies to tokenized real-world assets such as U.S. Treasuries and money market funds. It outlines standards for legal enforceability and things like custody and control.

The agency also issued a no-action position for FCMs that accept non-securities digital assets as margin, including payment stablecoins. 

The relief allows firms to incorporate qualifying digital assets into customer accounts while clarifying how capital and segregation rules apply under the new regime.

Crypto industry applause

The CFTC formally withdrew Staff Advisory No. 20-34, which previously restricted how virtual currencies could be held in customer accounts. The advisory had been in place since 2020 and had limited the operational use of digital assets as collateral.

The agency said developments in digital markets and the enactment of the GENIUS Act made the advisory obsolete.

Crypto and fintech firms quickly welcomed the decision, saying the changes offer long-awaited regulatory certainty.

Coinbase Chief Legal Officer Paul Grewal said the move confirms the industry’s belief that stablecoins and digital assets can reduce risk and improve efficiency in financial markets, according to a CFTC announcement. 

Circle President Heath Tarbert also chimed in and said the changes would reduce settlement risk and friction in derivatives trading by enabling near real-time margin settlement.

Crypto.com CEO Kris Marszalek said the announcement would allow tokenized collateral to be used in U.S. markets for the first time at scale, adding that it would support 24/7 trading in regulated derivatives products.

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