Deciphering the True Turning Point in Crypto Regulation: BTC, ETH, and USDC Gain Access to the US Derivatives Market

Original article | Odaily Planet Daily ( @OdailyChina )

Author | Asher ( @Asher_0210 )

This morning, Acting Chair of the U.S. Commodity Futures Trading Commission (CFTC), Caroline D. Pham, announced the launch of a pilot program for digital asset collateral, allowing digital assets such as BTC, ETH, and USDC to be used as compliant margin in regulated U.S. derivatives markets. She also issued regulatory guidance on tokenized collateral and repealed outdated rules that had become invalid due to the GENIUS Act. Furthermore, Caroline D. Pham... He stated, "As I have said before, adhering to the concept of responsible innovation can ensure that the U.S. market remains a world leader and drive U.S. economic growth, because market participants can use their funds more safely and achieve greater returns on investment."

Crypto assets have officially entered the derivatives market with compliant status.

The CFTC's newly launched digital asset collateral pilot program is essentially a policy opening by US regulators. Previously, in the regulated US derivatives market, margin could only be held in the form of traditional assets such as cash, Treasury bonds, and commercial paper; crypto assets were excluded. The launch of this pilot program signifies that regulators have for the first time explicitly acknowledged that digital assets can be used as collateral in mainstream financial transactions. The specific details of the program are explained below:

Applicable to: Futures commission merchants (FCMs)

The pilot program targets licensed futures commission brokers, who are key participants in the derivatives market and are responsible for managing client funds, providing margin management, and clearing channels.

Available assets: BTC, ETH, USDC

For the first 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. The regulator has explicitly stated that this move adheres to the principle of "technology neutrality," focusing on risk attributes rather than asset labels.

The regulatory requirements are extremely strict.

To ensure the stability of the traditional financial system, the CFTC has imposed highly prudent requirements, including:

• Digital assets must be held in segregated accounts and must not be mixed with the institution's own funds;
• FCMs must report changes in their positions to the CFTC weekly;
• Any major problems must be reported immediately;
• The CFTC will apply the most conservative haircut to digital assets to hedge against price volatility risk.

In other words, regulation is not simply about allowing things to proceed, but about establishing a controllable, auditable, and traceable institutional framework.

Repeal old rules and introduce new guidelines

Alongside the launch of the digital asset collateral pilot program, the CFTC announced the repeal of Circular 20-34 of 2020—an outdated rule no longer suitable for the current market following the passage of the GENIUS Act. The CFTC also released new regulatory guidelines for "tokenized collateral," providing a regulatory foundation for the future on-chaining of traditional assets such as "tokenized government bonds" and "tokenized funds."

Shift in regulatory attitude: Providing "protection against inaction"

For FCMs hoping to pilot digital asset margin trading, the CFTC has offered a "no-action relief," providing regulatory clarity and requiring them to maintain robust risk controls. This is tantamount to the CFTC explicitly stating to institutions: "We will not incur additional enforcement risks by operating within the regulatory framework." This is a crucial reassurance for traditional institutions looking to enter the crypto space.

Industry leaders' opinions

Coinbase: Confirming Industry Consensus and Driving a Payment Revolution

Coinbase Chief Legal Officer Paul Grewal stated in an article on the X platform, "The CFTC's launch of the digital asset collateral pilot program confirms the long-standing consensus in the crypto industry: stablecoins and digital assets can make payments faster, cheaper, and less risky." Grewal pointed out that this pilot program is precisely what Congress envisioned when it passed the GENIUS Act, paving the way for stablecoins to become a key settlement tool , enabling faster and lower-cost cross-border payments. Coinbase Chief Policy Officer Faryar Shirzad added that this move will significantly enhance the usability of digital assets, attracting more institutional investors to the regulated market. Simultaneously, the potential of stablecoins as a settlement tool will be fully realized, potentially enabling faster and lower-cost cross-border payments .

Crypto.com: Ushering in the 24/7 trading era in the US market marks a milestone for crypto assets as they move into mainstream finance.

Crypto.com CEO Kris Marszalek stated in an article on the X platform: "This announcement will make 24/7 trading a reality in the United States and drive the deep integration of crypto assets with mainstream finance." He emphasized that the use of tokenized collateral will reduce settlement friction, improve liquidity, and set a benchmark for global markets . This is not only a technological advancement but also a "green channel" for innovation from regulators.

Circle: Reducing Settlement Risk and Embracing Real-Time Clearing

Circle President Heath Tarbert commented, "This is a 'moment of unlocking' for the crypto market, allowing institutions to manage risk efficiently while maintaining asset exposure. These changes will significantly reduce settlement risk and friction in derivatives trading by enabling near real-time margin settlement." Furthermore, Tarbert specifically mentioned that USDC, as eligible collateral, will further solidify the core role of stablecoins in traditional finance.

Ripple: Unlocking Capital Efficiency, the US Regains Leadership

In its response, Ripple stated that this pilot program "finally provides institutions with the long-awaited unlocking of capital efficiency ," reinforcing the United States' global leadership at a critical moment. It also pointed out that allowing BTC, ETH, and USDC to be used directly as margin will reduce friction for institutions converting crypto assets into cash, driving trillions of dollars into regulated derivatives markets. This marks a strategic shift from "offshore uncertainty" to "domestic compliance."

In summary, although the digital asset collateral pilot program is a short-term test (lasting three months), its strict reporting and risk control mechanisms (such as weekly disclosure of holdings and maximum discount rates) ensure a solid foundation for security and pave the way for future expansion. In the short term, it has a limited impact on retail investors, but in the long run, it is indeed an important signal of institutional recognition.

The real turning point in US crypto regulation

The CFTC's digital asset collateral pilot program not only means that BTC, ETH, and USDC can be used as compliant margin, but also marks the first time that digital assets have entered the core US financial market with an institutionalized status. Futures and swap markets are the world's most important funding hubs. When crypto assets can be used as collateral in these markets, they leap from "speculative assets" to regulated financial instruments. Institutional investors gain a clear compliance path, and market liquidity and capital efficiency are subsequently improved.

The inclusion of the stablecoin USDC is particularly symbolic, as it is officially recognized as a digital carrier of the US dollar that can support financial transactions. This not only solidifies the dollar's central position in on-chain payments and settlements but also paves the way for stablecoins to become key financial infrastructure. This signifies that US regulation is shifting from "restriction" to "institutional guidance," providing a clear framework for the development of tokenized finance, including core requirements such as custody, segregation, valuation, and risk management. This lays the foundation for the on-chain deployment of tokenized government bonds, funds, and money market instruments in the future.

In the short term, this pilot program has a limited impact on retail investors, and its stringent reporting and risk management mechanisms ensure market safety. However, in the long term, it is a significant signal of institutional approval, meaning more capital will enter the crypto market through regulated channels, the settlement function of stablecoins will be fully realized, and derivatives liquidity and market efficiency are expected to improve significantly. More importantly, this pilot program reflects a structural shift in US regulation: crypto assets are no longer merely speculative objects, but institutionalized assets that can be integrated into the mainstream financial system.

If crypto ETFs signify "crypto assets becoming assets," then the CFTC's launch of a digital asset collateral pilot program marks "crypto assets officially entering the US financial system." In the future, more assets will be tokenized, institutions will use on-chain assets as collateral, and the US dollar will circulate on-chain through stablecoins. This is not merely a short-term policy move; it heralds a new cycle of deep integration between crypto and mainstream finance.