US CFTC Launches Pilot Program: Digital Assets Now Accepted as Collateral
Wall Street's rulebook just got a crypto chapter. The Commodity Futures Trading Commission is rolling out a pilot that lets digital assets stand in for cash or securities as collateral—a move that could unlock billions in frozen capital.
From Speculation to Collateralization
Forget just trading Bitcoin. This pilot transforms volatile tokens into usable financial instruments. Institutions can now pledge their crypto holdings to back derivatives positions, freeing up traditional cash for other bets. It's a liquidity injection straight from the blockchain.
The Mechanics of Digital Collateral
The program imposes strict custody and valuation rules—no hiding risky assets in digital wallets. Daily mark-to-market requirements will force transparency, while approved custodians act as gatekeepers. It's DeFi principles wearing a regulatory suit.
Why This Changes Everything
This isn't just paperwork. It signals that regulators finally see crypto as 'real' enough to back traditional financial contracts. Expect hedge funds and trading desks to recalculate their balance sheets overnight—suddenly that dormant Ethereum stash has a job beyond hoping for the next bull run.
The pilot cuts through years of regulatory ambiguity, giving institutional players a clear path to leverage their crypto portfolios. Sure, Wall Street will probably find a way to charge a 2% 'collateral transformation fee' for the privilege—some traditions die hard. But make no mistake: digital assets just graduated from the casino to the vault.
US Derivatives Regulator Opens Path For Tokenized Assets To Back Trades
Pham said the initiative aims to give US traders safer, CFTC-supervised venues after heavy losses on offshore platforms. She added that the agency is “launching a US digital assets pilot program for tokenized collateral, including Bitcoin and Ether,” with guardrails for customer protection and tighter monitoring.
The CFTC’s three divisions also issued guidance confirming that tokenized assets can be evaluated under the existing framework. The guidance covers tokenized real-world assets such as US Treasuries and money market funds and addresses custody, segregation, valuation haircuts and operational risks.
The agency also granted no-action relief for futures commission merchants that want to accept certain non-securities digital assets as customer margin.
Pilot Starts With Bitcoin, Ether And USDC As CFTC Gains Fresh Market Visibility
For the first three months, FCMs can only accept BTC, ETH and USDC. They must file weekly reports on the amounts held and notify the agency of any major issues, giving the CFTC early insight into market behaviour without blocking adoption.
In a parallel move, the CFTC withdrew a 2020 advisory that restricted the use of VIRTUAL currencies as collateral, saying it no longer reflects current market conditions after years of development and the passage of the GENIUS Act.
Crypto Execs Call CFTC Guidance A Milestone For US Market Innovation
Crypto firms welcomed the shift. Coinbase’s chief legal officer Paul Grewal said the decision confirms that digital assets can make payments faster and cheaper. Circle president Heath Tarbert said supervised stablecoins will reduce settlement frictions and support round-the-clock trading.
Crypto.com CEO Kris Marszalek called the guidance “an important milestone,” linking it to President Trump’s goal of making the US “the crypto capital of the world.”
Ripple’s Jack McDonald added that recognizing tokenized assets as eligible margin improves capital efficiency and strengthens US leadership in financial innovation.
The CFTC said the pilot and guidance reflect recommendations from the Digital Asset Markets Subcommittee and feedback from industry forums. Bitcoin, Ether and USDC are set to take on a more formal role in US derivatives markets as regulators monitor how tokenized collateral performs in practice.
