{"id":2588502,"date":"2025-12-11T11:20:04","date_gmt":"2025-12-11T16:20:04","guid":{"rendered":"https:\/\/www.valuewalk.com\/?p=2588502"},"modified":"2025-12-16T13:49:35","modified_gmt":"2025-12-16T18:49:35","slug":"cftc-launches-digital-assets-pilot-allowing-bitcoin-ether-and-usdc-as-collateral","status":"publish","type":"post","link":"https:\/\/www.valuewalk.com\/news\/cftc-launches-digital-assets-pilot-allowing-bitcoin-ether-and-usdc-as-collateral\/","title":{"rendered":"CFTC Launches Digital Assets Pilot Allowing Bitcoin, Ether and USDC as Collateral"},"content":{"rendered":"\n

The U.S. Commodity Futures Trading Commission (CFTC<\/a>) has launched<\/a> a pilot program permitting Bitcoin, Ether, and USDC to be used as collateral in derivatives markets.<\/strong><\/p>\n\n\n\n

Announced in Washington by Acting Chair Caroline Pham, the initiative marks a step toward clearer, practical rules for tokenized assets under the GENIUS Act, following years of industry requests.<\/p>\n\n\n\n

The program overturns previous limitations, including the withdrawal of Staff Advisory 20-34 from 2020, which had largely prevented digital assets from backing derivatives positions.<\/p>\n\n\n\n

Alongside the pilot, the CFTC issued updated guidance on tokenized real-world assets<\/a>, such as U.S. Treasuries and money market funds, emphasizing a technology-neutral approach.<\/p>\n\n\n\n

A new rulebook for tokenized collateral<\/span><\/h2>\n\n\n\n

Caroline Pham, the Acting Chair of the U.S. CFTC, stated that the pilot establishes guardrails to protect customer assets and gives the agency stronger visibility through active reporting. Only approved futures commission merchants (FCMs) are eligible to participate in the first phase.<\/p>\n\n\n\n

FCMs can now accept BTC<\/a>, ETH<\/a>, and stablecoins<\/a> as margin if they meet custody and risk standards, submit weekly holdings reports, and notify the CFTC of any issues. The CFTC also issued a no-action letter giving participating firms limited permission to hold certain digital assets in segregated customer accounts. This clarifies capital treatment and segregation rules while allowing firms to test the framework without full enforcement pressure.<\/p>\n\n\n\n

In practice, registered firms can post Bitcoin as collateral for leveraged swaps tied to commodities while the CFTC monitors custody, valuation, and operational safeguards. Tokenized Treasuries and money market funds must still meet existing standards for enforceability, valuation, and custody.<\/p>\n\n\n\n

The goal, according to Pham, is to bring these assets into a supervised environment and offer traders a safer alternative to offshore venues.<\/p>\n\n\n\n

Key requirements for the pilot:<\/strong><\/p>\n\n\n\n