The U.S. Commodity Futures Trading Commission (CFTC) announced the launch of a pilot program that will allow Bitcoin (BTC), Ether (ETH), and U.S. Dollar Coin (USDC) to be used as collateral in the nation’s regulated derivatives markets.
The announcement was made by CFTC Acting Chair Caroline D. Pham, who noted that the proposal is part of an effort by the regulator. Accelerate adoption of digital innovation Under the framework of supervision.
Pham said the initiative makes sense given the losses experienced by users on trading platforms outside the United States. He argued that the public “deserves a safe local market” to replace exchanges. offshore.
He also recalled that spot trading of cryptocurrencies can be carried out by companies registered with the CFTC.
According to officials, The new system includes safeguards Take concrete steps to protect customer assets and strengthen the CFTC’s oversight and reporting mechanisms in regulated markets.
As part of this program, the authorities have enabled a framework that allows registered brokers operating in the futures market to accept certain digital assets as collateral from their customers. During the first three months of the pilot, Only BTC, ETH, and USDC can be used as collateral..
At this initial stage, intermediaries are required to send weekly reports detailing how much of each asset they hold in their clients’ accounts. Additionally, any incidents related to warranty use must be reported immediately.
CFTC expands rules for digital collateral
The agency also released new guidance on tokenized collateral applicable to real assets (RWAs) such as U.S. Treasuries and money market funds. These recommendations address topics such as storage, segregation, operational risk, and evaluation criteria.
On top of that, CFTC rescinded Staff Recommendation 20-34an article issued in 2020 that set out strict restrictions and requirements for accepting cryptocurrencies as collateral. The group says advances in technology and updates to the legal framework have made the guide outdated.
It is worth noting that authorities have recently advanced another measure that is considered historic. As reported by CriptoNoticias, this is the first time that spot trading of cryptocurrencies has been authorized within a domestically registered futures exchange. The initiative, which Pham described as the beginning of a “golden age of innovation,” is in response to the recommendations of the Presidential Task Force on Digital Asset Markets.