CFTC Approves Bitcoin and USDC as Collateral

CFTC launches pilot for digital assets as collateral in derivatives markets.

The U.S. Commodity Futures Trading Commission (CFTC) has launched a pilot program allowing the use of digital assets as collateral in derivatives markets, according to acting chair Caroline Pham.

The initiative is part of the GENIUS Act. Initially, Bitcoin, Ethereum, and the stablecoin USDC are included in the list of acceptable collateral assets.

The program permits futures commission merchants (FCMs) to accept these assets for securing clients’ margin positions. During the first three months of the pilot phase, the list of coins will be limited to these three.

Companies are required to report weekly to the regulator on the volumes of digital assets in client accounts and promptly notify of any issues.

Concurrently, the agency issued guidance on the use of tokenized real-world assets, including U.S. Treasury bonds and money market funds. The CFTC emphasized a technology-neutral approach, with each instrument being analyzed individually.

Pham also rescinded the outdated Staff Advisory No. 20-34, which restricted intermediaries’ ability to accept virtual currencies.

“Americans deserve safe markets in the U.S. as an alternative to offshore platforms,” she stated.

Other Initiatives

On December 4, the acting chair of the CFTC announced the commencement of trading in spot cryptocurrency products on regulated exchanges. She noted that this decision aims to bring liquidity back into the U.S. legal framework and protect investors.

Representatives of the crypto industry supported the regulator’s actions. Coinbase’s Chief Legal Officer Paul Grewal noted that the decision confirms stablecoins’ ability to make payments faster and cheaper.

Circle President Heath Tarbert stated that the use of regulated “stablecoins” will reduce settlement risks and support the global leadership of the U.S. dollar.

Crypto.com CEO Kris Marszalek called this event pivotal for implementing 24/7 trading in the U.S.

Ripple’s Senior Vice President Jack McDonald emphasized that regulatory clarity will enhance capital efficiency.

The new rules took effect immediately upon publication.

Back in September, it was revealed that the SEC and CFTC intend to coordinate the launch of spot crypto asset trading on regulated platforms.