Odaily Planet Daily reports that Caroline D. Pham, acting chair of the U.S. Commodity Futures Trading Commission (CFTC), announced the launch of a digital asset collateral pilot program, allowing digital assets such as BTC, ETH, and USDC to be used as compliant margin in regulated derivatives markets in the United States. The program also released regulatory guidance on tokenized collateral and repealed outdated rules that had become invalid due to the GENIUS Act.
The CFTC stated that this move is a significant milestone in advancing the use of tokenized assets in regulated markets, providing a clear regulatory framework for the futures and swaps markets, including: the availability of tokenized assets, legal enforceability, custody and segregation requirements, valuation and risk management, and operational risks. For the initial three months, FCMs (Futures Commission Merchants) will be limited to accepting BTC, ETH, and USDC as collateral and will be required to report their positions to the CFTC on a weekly basis, account by account.
At the same time, the CFTC granted "no-action" protection to FCMs that accept digital assets as collateral, providing regulatory clarity to these institutions and requiring them to maintain robust risk controls. The CFTC also revoked Staff Circular 20-34, citing the GENIUS Act and recent rapid developments that rendered its contents inapplicable.
Several industry companies welcomed the move. Coinbase's Chief Legal Officer stated that the CFTC's decision proves stablecoins and digital assets can improve payment efficiency. Circle's president said this move will reduce settlement friction and strengthen the dollar's dominance. Crypto.com's CEO called it "a significant moment in US crypto history." Ripple executives pointed out that explicitly including stablecoins in eligible margins will lead to higher capital efficiency.
The CFTC stated that the action was based on feedback from market participants, public comments, Crypto CEO Roundtable feedback, and recommendations from its Global Markets Advisory Committee.
Odaily Planet Daily reports that the UK Financial Conduct Authority (FCA) has released discussion and consultation documents proposing several reforms aimed at "enhancing the UK's investment culture" and has formally sought feedback from the crypto industry. The FCA stated that it intends to "expand consumer investment access" while adjusting rules related to customer segmentation and conflicts of interest.
The FCA pointed out that poor investment performance on high digital engagement (DEP) applications was almost entirely due to crypto asset and CFD trading. The regulator emphasized that some users were making investments through "crypto asset proxy products" without limits, risk warnings, or suitability tests, posing significant potential risks.
In its consultation document, the FCA recommended adding the following guidance:
For clients whose primary investment history is concentrated in high-risk speculative assets or crypto assets, this should not be considered a basis for "having professional investment capabilities" unless they have sufficient evidence to meet the thresholds of professional investors, including the ability to bear potential losses.
The FCA stated that the reforms aim to simplify the regulatory framework, assigning clearer oversight responsibilities to agencies rather than relying on the "more casual testing" of the past. The regulator requires companies involved in crypto-asset advisory or sales to submit feedback by February or March of next year.
The UK has been progressively modernizing its cryptocurrency regulations in recent years, including formally recognizing digital assets as "property" in 2024, providing clearer legal grounds for cases involving theft and bankruptcy. Simultaneously, the government is also assessing whether to ban cryptocurrency donations to political parties. (Cointelegraph)
