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CFTC Opens Pilot Letting Bitcoin, Ether and USDC Serve as Derivatives Collateral

The pilot tests onshore tokenized margin to pull crypto leverage into U.S. safeguards through strict custody and real-time reporting.

Overview

  • Approved futures commission merchants can accept BTC, ETH and USDC as customer margin under tightened segregation, custody, valuation and weekly disclosures during an initial three-month review period.
  • The agency withdrew 2020 Staff Advisory 20-34 and issued technology-neutral guidance detailing how tokenized Treasuries and money‑market funds can meet enforceability, custody and haircut standards.
  • Limited no‑action relief allows qualified firms to hold certain digital assets in segregated customer accounts provided they satisfy risk management and capital requirements.
  • Acting Chair Caroline Pham said only CFTC‑registered intermediaries may participate and collateral must be in kind with the contract’s asset, with enhanced monitoring and incident notifications.
  • Staff will evaluate operational resilience during the monitoring window and may consider additional eligible assets afterward, a shift industry leaders say could enable faster, 24/7 margin settlement.