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CFTC Launches Digital Assets Pilot Allowing Bitcoin, Ether and USDC as Collateral
Acting Chair Caroline Pham has unveiled a first-of-its-kind U.S. program to permit tokenized collateral in derivatives markets, citing "clear guardrails" for firms.
Dec 8, 2025, 9:55 p.m.
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What to know:
- The CFTC has launched a pilot program allowing BTC, ETH and USDC to be used as collateral in U.S. derivatives markets.
- The program is aimed at approved futures commission merchants and includes strict custody, reporting and oversight requirements.
- The agency also issued updated guidance for tokenized assets and withdrew outdated restrictions following the GENIUS Act.
The Commodity Futures Trading Commission (CFTC) on Monday launched a pilot program allowing select digital assets — bitcoin , ether and USD Coin (USDC) or other payment stablecoins — to be used as collateral in U.S. derivatives markets.
The program, announced by Acting Chairman Caroline Pham, is part of a broader push to give market participants clear rules for using tokenized collateral, including tokenized versions of real-world assets like U.S. Treasuries.
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“Today, I am launching a U.S. digital assets pilot program for tokenized collateral, including bitcoin and ether, in our derivatives markets that establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting,” said Pham in a statement.
The CFTC had already begun working to let stablecoins be used as collateral for certain products earlier this year.
For now, the program applies only to futures commission merchants (FCMs) that meet certain criteria. These firms can accept BTC, ETH and payment stablecoins like USDC as margin collateral for futures and swaps, but must comply with strict reporting and custody requirements. For the first three months, they must provide weekly disclosures on digital asset holdings and alert the CFTC of any issues.
In practice, this could mean a registered firm accepting bitcoin as collateral for a leveraged swap tied to commodities, while the CFTC monitors the operational risks and custody arrangements behind the scenes.
The agency also issued a no-action letter giving FCMs limited permission to hold certain digital assets in segregated customer accounts, provided they manage risks carefully. Importantly, the CFTC withdrew older guidance from 2020 that had effectively blocked the use of crypto as collateral in many cases. That advisory is now seen as outdated, especially after the passage of the GENIUS Act, which updated federal rules around digital assets.
Industry executives praised the move. “This major unlock is precisely what the Administration and Congress intended the GENIUS Act to enable,” said Coinbase Chief Legal Officer Paul Grewal in a statement shared by the CFTC.
The CFTC emphasized that its rules remain technology-neutral but said real-world tokenized assets like Treasuries must still meet enforceability, custody, and valuation standards.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
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