CFTC Launches Crypto Pilot for Tokenized Collateral in Markets

CFTC Launches Pilot Program Allowing Bitcoin and Ether as Collateral in Derivatives Markets, Offering Regulatory Clarity and Enhanced Customer Protections

  • The Commodity Futures Trading Commission (CFTC) launched a pilot program enabling digital assets like Bitcoin and ether to be used as collateral in derivatives markets.
  • The CFTC updated its guidance on tokenized collateral, including real world assets such as U.S. Treasuries, and removed outdated requirements under the GENIUS Act.
  • The program offers regulatory clarity on tokenized assets and establishes protections and enhanced monitoring for customer assets.
  • Coinbase Chief Legal Officer Paul Grewal praised the CFTC’s move, emphasizing the benefits of stablecoins and digital assets in payments and finance.

The Commodity Futures Trading Commission (CFTC) announced on December 8, 2025, the launch of a pilot program that allows digital assets, including bitcoin and stablecoins, to be used as collateral in derivatives markets. This initiative aims to provide clear regulatory guidelines and safeguards for customer assets in U.S. markets. The announcement followed the enactment of the GENIUS Act and accompanies revised guidance on tokenized collateral.

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According to CFTC Acting Chairman Caroline D. Pham, this pilot program supports the integration of tokenized collateral such as bitcoin and ether in derivatives trading. Pham emphasized the importance of safe domestic markets for Americans, especially given recent losses on foreign crypto exchanges. The program introduces distinct guardrails to protect customers and enhances CFTC monitoring and reporting capabilities.

The CFTC also updated its guidance to clarify that its regulations are technology-neutral and encourages assessments of tokenized assets on a case-by-case basis within existing frameworks and compliance procedures. This includes tokenized real world assets (RWA), such as U.S. Treasury securities and money market funds. Additionally, the CFTC issued a no-action stance for certain rules related to Futures Commission Merchants (FCMs) that hold non-security digital assets, including payment stablecoins, as margin collateral or in segregated accounts.

Paul Grewal, Chief Legal Officer at Coinbase, welcomed the CFTC’s decision. He stated, “The CFTC’s decision confirms what the crypto industry has long known: That stablecoins and digital assets can make payments faster, cheaper, and reduce risk.” He also thanked Chairman Pham for recognizing tokenized financial innovation and highlighted the alignment with the GENIUS Act’s objectives.

The pilot program is effective immediately and marks a significant step toward clearer regulations for digital assets in the U.S. derivatives markets. Further details can be found in the CFTC’s official press release.

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