CFTC Pilot Allows Crypto as Collateral in US Markets

Crypto News Regulation

US Derivatives Markets Open Doors to Crypto Collateral Under CFTC Pilot

Written by Aaron S.,

Editor-In-Chief

Last Updated: December 09, 2025

Key Takeaways

The CFTC launched a pilot allowing Bitcoin, Ethereum, and USDC as margin collateral for derivatives trading;
New guidance clarifies the use of tokenized assets as collateral, covering custody, valuation, and operational risk;
The decision ends old restrictions, with industry leaders calling it a major step for innovation and tokenized finance.

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US Derivatives Markets Open Doors to Crypto Collateral Under CFTC Pilot

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The United States Commodity Futures Trading Commission (CFTC) has introduced a new pilot program designed to allow Bitcoin BTC $90,500.25 , Ethereum ETH $3,117.17 , and USDC USDC $0.9994 to serve as margin collateral within derivatives markets.

CFTC acting chairman Caroline Pham stated in a press release on December 8 that the initiative includes updated guidance from the CFTC's Market Participants Division, Market Oversight Division, and Clearing & Risk Division.

This guidance provides clarity on using tokenized assets, including US Treasuries and money-market funds, as collateral, and addresses enforceability, custody, segregation, valuation, and operational risks for futures and swaps trading.

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For the initial three-month phase, the pilot permits Futures Commission Merchants (FCMs) to accept those digital assets as customer margin. These firms must submit weekly reports detailing their digital asset holdings in customer accounts and any events affecting the use of crypto collateral.

The program also involves withdrawing a previous advisory, Staff Advisory 20‑34, that had limited how FCMs could accept virtual currencies as customer collateral. That restriction was deemed outdated following the passage of the GENIUS Act.

Coinbase's $1.38B Chief Legal Officer, Paul Grewal, noted the decision removes what he called "a concrete ceiling on innovation" and backed the regulatory clarity for tokenized collateral.

General Counsel Katherine Kirkpatrick Bos of StarkWare described the use of tokenized collateral in derivatives markets as "MASSIVE".

Recently, the US Senate Agriculture Committee shared a new draft proposal to set clearer rules for regulating cryptocurrency markets. What does the proposal include? Read the full story.