The U.S. Commodity Futures Trading Commission (CFTC) has taken a major step toward bringing crypto into regulated U.S. markets. Acting Chair Caroline Pham has launched a pilot program that allows Bitcoin, Ethereum, and USDC to be used as collateral in U.S. derivatives trading.
Alongside this, the CFTC released new guidance on tokenized collateral and removed outdated restrictions that no longer match today’s crypto market. The move comes as demand grows for clearer and more practical U.S. crypto rules.
CFTC Pilot Could Boost Institutional Crypto Adoption
Under the new pilot, approved firms can use BTC, ETH, and USDC as collateral for futures and swaps, a practice that previously lacked clear approval in the U.S. During the first three months, participating firms must submit regular reports so the CFTC can monitor market activity and risk.
The goal is to support innovation within U.S. regulation rather than pushing trading offshore, where weaker oversight has led to losses in the past.
The CFTC also said tokenized assets will not receive special treatment. Digital assets must meet the same rules and standards as traditional collateral.
Updated Guidance and Removal of Legacy Rules
To support this change, the CFTC issued new guidance on tokenized real-world assets, including digital U.S. Treasuries. It explains how firms should handle legal rights, asset valuation, custody, and operational risks when using blockchain technology.
The agency also withdrew Staff Advisory 20-34, which had limited how futures brokers could hold virtual currencies. With clearer rules now in place under the GENIUS Act, the CFTC said the advisory is outdated. Removing it gives firms more flexibility while maintaining strong risk controls.
Potential Impact on Institutional Growth
Market analysts see this move as a potential turning point for institutional crypto adoption. Muhammad Azhar says allowing digital assets as regulated collateral could help Bitcoin and Ethereum grow within clear U.S. rules. He notes, however, that the pilot’s success depends on secure custody and how well these systems integrate with existing DeFi platforms, especially for trust-based assets like USDC.
Analyst Elfie Peacock adds that Ripple’s RLUSD stablecoin deserves attention. He highlights that Ripple, one of the most regulated firms in the sector, has shown how stablecoin collateral can make derivatives markets more efficient. Partnerships like Ripple’s with Hidden Road demonstrate how compliant stablecoin settlements can operate smoothly at scale.
Frequently Asked Questions
It’s a new CFTC-supervised pilot that lets select futures brokers accept Bitcoin, Ethereum, and USDC as margin collateral for futures and swaps, with strict reporting and risk controls during the initial phase.
Tokenized assets follow the same rules as traditional collateral, with clear expectations for custody, valuation, and legal rights.
Clear rules and approved collateral use may boost institutional confidence and expand regulated crypto market participation.