CFTC Launches Pilot Program For Use of Digital Assets as Collateral in Derivatives Markets

Participants in the program must limit tokenized collateral to assets already eligible as regulatory margin under existing CFTC rules, with an emphasis on high liquidity, low credit risk, and strong performance under financial stress.

“Americans deserve safe U.S. markets as an alternative to offshore platforms, and that’s why last week I announced that spot crypto can now be traded on CFTC registered exchanges,” CFTC acting chair Caroline Pham said in a press release. “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customer assets and provides enhanced CFTC monitoring and reporting… and withdrawing CFTC requirements that are now outdated under the GENIUS Act.”

The launch of the program comes after the close of a public comment proceeding on tokenized collateral and stablecoins launched in September 2025.

“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,” Coinbase chief legal officer Paul Grewal, said in a statement.  “This major unlock is precisely what the Administration and Congress intended the GENIUS Act to enable—and will allow digital innovation to transform and improve traditional areas of finance. We encourage other regulators to quickly follow suit.”

All tokenized collateral must meet existing legal enforceability standards, per the guidance, including valid ownership rights, enforceable security interests and settlement finality.

Read more: CFTC Gives Formal Blessing to Spot Trading of Crypto on Registered Exchange

The CFTC emphasized that the guidance is non-binding, creates no safe harbor or enforcement immunity, and represents only the views of CFTC staff, not a formal rulemaking. Guidance may be updated as technology and the law evolve.

“Deploying prudentially supervised payment stablecoins across CFTC-regulated markets protects customers, reduces settlement frictions, supports 24/7 risk reduction, and advances U.S. dollar leadership through global regulatory interoperability,” Circle president Heath Tarbert said. “Enabling near-real-time margin settlement will also mitigate settlement-failure and liquidity-squeeze risks across evenings, weekends, and holidays.”

As part of providing the pilot program, the CFTC’s Market Participants Division, which prepared the guidance, withdrew a previous staff advisory that placed certain restrictions on an FCM’s ability to accept virtual currencies as customer collateral.

“The substantial developments with respect to digital assets and the use of tokenized collateral in the derivatives markets that occurred in the intervening years since [the advisory’s] issuance, including the enactment of the GENIUS Act, have rendered the advisory outdated and no longer relevant,” according to the press release.

“The CFTC’s actions mark a pivotal moment for integrating digital assets into regulated derivatives markets. Ripple’s senior VP of stablecoins Jack McDonald said. “By recognizing tokenized digital assets—including stablecoins—as eligible margin, the CFTC is providing the regulatory clarity needed to move the industry forward. This step will unlock greater capital efficiency and solidify U.S. leadership in financial innovation.”