New CFTC Crypto Initiative: Bitcoin, Ethereum, To Serve As Collateral In Derivatives Trading
The US Commodity Futures Trading Commission (CFTC), led by Acting Chair Caroline Pham, has launched a pilot program permitting Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC) to be used as collateral in US derivatives markets. This initiative includes new guidance on tokenized assets, covering eligible assets, custody, valuation, and risk management. The CFTC also issued a no-action position for Futures Commission Merchants (FCMs) accepting crypto as margin collateral and withdrew an outdated advisory that previously restricted such practices. FCMs can now accept these digital assets for an initial three-month period, during which they must submit weekly reports and notify the CFTC of any significant issues. Pham stated the move aims to provide regulatory clarity, protect customer assets, and offer a safe alternative to offshore crypto exchanges following recent customer losses.
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