CFTC Allows Stablecoins and Crypto as Market Collateral

• Acting Chairman Caroline D. Pham announced the pilot launch date on December 8, 2025.
• Bitcoin (BTC), Ether (ETH), and USD Coin (USDC) can now be used as collateral.
• This applies to futures commission merchants (FCMs) in U.S. derivatives markets that are regulated.

The U.S. Commodity Futures Trading Commission (CFTC) has made a big step forward in bringing together digital assets and traditional finance. Acting Chairman Caroline D. Pham announced a new pilot program on December 8, 2025, that lets some cryptocurrencies be used as collateral in derivatives trading. This move shows that regulated markets are becoming more open to crypto.

Futures commission merchants (FCMs) can now take Bitcoin, Ether, and stablecoins like USDC from customers as margin for futures and swaps. To keep these assets safe, they must be kept in separate accounts. FCMs have to send the CFTC weekly reports for the first three months about the kinds and amounts of digital assets they have, sorted by customer group.

There is a “no-action letter” in the program. This means that the CFTC won’t enforce some rules against companies that join as long as they follow the new rules. This setup helps see how crypto can work in real trading without causing too many problems.

The CFTC has made clear rules about custody, valuation, and risk control to keep everyone safe. For instance, tokenized versions of real-world assets like U.S. Treasury securities or money market funds must meet requirements for being legally enforceable and safe to use.

The agency also took down an old advisory from 2020 that said you couldn’t use crypto as collateral. They said it was no longer relevant because of new laws like the GENIUS Act. This change makes it possible for faster settlements and operations around the clock, which lowers trading risks.

In her statement, Acting Chairman Pham talked about the program’s goals: “Under my leadership this year, the CFTC has led the way into America’s Golden Age of Innovation and Crypto… 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.”

Note: This news was written by our editor, rewritten with the help of AI, and reviewed by our editor to ensure its accuracy and compliance with our standards.