The U.S. Commodity Futures Trading Commission (CFTC) has initiated a groundbreaking pilot program that allows approved futures commission merchants to use bitcoin as collateral in U.S. derivatives markets.
The move marks a significant regulatory shift, providing clearer rules and oversight for tokenized collateral in the financial sector.
Pilot program details
Announced by Acting Chair Caroline Pham, the program permits select firms to accept bitcoin and certain stablecoins as margin collateral for futures and swaps.
Participation is limited to registered futures commission merchants (FCMs) that must adhere to stringent custody, disclosure, and risk management protocols.
For the first three months, these firms are required to provide weekly reports on digital asset holdings and notify the CFTC of any operational issues.
Pham stated in her announcement:
“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.”
Updated guidance following the GENIUS Act
The agency has also updated its guidance on tokenized assets, withdrawing previous restrictions that had limited the use of digital assets as collateral.
This regulatory update follows the passage of the GENIUS Act, which modernized federal rules related to digital asset custody and use.
Industry leaders welcomed the change. Coinbase Chief Legal Officer Paul Grewal described it as a “major unlock,” aligning with the intent of recent legislative reforms.
Oversight and technology neutrality
The CFTC emphasized that, while its rules are designed to be technology-neutral, all real-world tokenized assets—such as Treasuries—must still meet strict enforceability and custody standards.
The agency issued a no-action letter granting limited permission for FCMs to hold certain digital assets in segregated customer accounts, provided they manage associated risks appropriately.
