CFTC Approves Tokenized Assets as Collateral in U.S. Derivatives Markets
- The U.S. Commodity Futures Trading Commission (CFTC) has launched a pilot program allowing Bitcoin, Ethereum, and USDC as collateral in derivatives markets.
- Acting Chair Caroline D. Pham emphasized the program aims to promote crypto activity while ensuring market protections.
- Participating firms must report their customer asset holdings and operational issues weekly to enhance monitoring.
- The CFTC has removed Staff Advisory 20-34, which previously restricted how firms managed digital assets as collateral.
- This decision follows a September policy change permitting stablecoins and digital assets as collateral based on recommendations from the President’s Working Group on Digital Asset Markets.
The CFTC’s new pilot program represents a significant shift towards integrating stablecoins and other digital assets into regulated financial systems, enhancing innovation while maintaining necessary safeguards.
With this pilot, the CFTC aims to establish clear guidelines for using tokenized assets, marking a pivotal step in modernizing U.S. derivatives markets.(Source)
