CFTC Launches Pilot Letting Crypto Serves as Derivatives Collateral
What Did the CFTC Announce?
The Commodity Futures Trading Commission is opening a pilot program that will allow BTC, ETH and USDC to be posted as collateral in derivatives markets. Acting Chair Caroline Pham announced the move on Monday, describing the program as part of a broader effort to update how U.S. derivatives infrastructure handles digital assets.
The pilot will begin with the three largest and most liquid cryptoassets, with room for expansion once the framework is tested. “As I’ve said before, embracing responsible innovation ensures that U.S. markets are the world leader, and drives progress that will unleash U.S. economic growth because market participants can securely put their dollars to work smarter and go further,” Pham said.
Pham, currently the commission’s lone member, has been driving the agency’s crypto agenda. Monday’s announcement follows a series of steps she introduced over the past year, including Bitnomial’s approval to list the first CFTC-regulated spot crypto products and earlier initiatives such as the “Crypto Sprint” program to clarify rule gaps.
Investor Takeaway
How Does the Pilot Fit Into the CFTC’s Tokenized Collateral Push?
The new program builds on a CFTC initiative from September focused on expanding tokenized collateral, particularly stablecoins, within cleared markets. The agency has been examining how digital assets can be used without introducing new settlement risks or operational gaps, especially for (FCMs) that sit between clients and clearinghouses.
In correspondence posted by the agency in response to a Coinbase inquiry, the CFTC laid out new reporting obligations for FCMs that take part in the program. They will have to file weekly disclosures on the amount of crypto held in customer accounts, including futures and cleared swaps positions. The letter also requires reporting of any “significant operation or system issue, disruption, or failure” involving digital asset collateral.
welcomed the pilot’s direction, saying, “The CFTC’s decision confirms what the crypto industry has long known: That stablecoins and digital assets can make payments quicker, cheaper, and reduce risk.”
What Else Is Changing in the CFTC’s Rulebook?
Alongside the pilot, the CFTC withdrew a staff advisory that had previously limited an FCM’s ability to accept crypto as customer collateral. The advisory was considered outdated later than the GENIUS Act — legislation covering stablecoins — passed earlier this year. With those restrictions lifted, the pilot can move forward under a clearer regulatory umbrella.
The changes reflect how the agency is handling overlapping questions: how to supervise firms that custody crypto collateral, how to monitor losses or operational failures tied to digital assets, and how to prevent settlement issues when the collateral itself trades on volatile markets. By requiring weekly reporting and incident disclosure, the CFTC is creating a tighter feedback loop than what exists in many other jurisdictions.
Investor Takeaway
Why Does This Matter for U.S. Crypto Market Structure?
The remains a major venue for institutional crypto exposure, but collateral rules have limited the direct use of digital assets. The pilot gives clearing members a controlled environment to test real collateral flows without waiting for a full rulemaking cycle. If the model works, it may reduce reliance on cash-only collateral and widen the range of products that platforms can support.
Pham’s broader efforts show an attempt to build a clear stance for the agency while Congress continues to debate federal . Her record includes pushing public discussions on crypto supervision, pushing for a regulatory sandbox, and opening paths for platforms to list spot crypto products under CFTC oversight. Monday’s announcement continues that track.
