The U.S. CFTC announced the release of BTC, ETH, and USDC as margin and collateral for derivatives contracts
The CFTC pilot program has released BTC, ETH, and USDC as margins for derivatives, symbolizing that cryptocurrencies have been fully recognized as valuable assets on Wall Street and integrated into the financial settlement system.
(Preliminary summary: U.S. CFTC: The federal-level "spot crypto market" is officially launched, and Bitcoin and Ethereum will be traded in the same frame as gold)
(Background supplement: The U.S. CFTC is calling for leveraged trading to be launched at the end of the year. What is the next step to open the perpetual contract on compliance exchanges?)
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The U.S. Commodity Futures Trading Commission (CFTC) announced a landmark pilot program on Monday, allowing futures commission merchants for the first time. (FCMs) directly accept Bitcoin (BTC), Ethereum (ETH) and USDC as initial margin for derivatives. This step has quickly broken down the long-standing financial gap between Wall Street and the 24-hour crypto market. It is also regarded as a key move for the United States to regain the pricing power of global crypto derivatives after the implementation of the GENIUS Act.
Pilot rules: tight monitoring replaces one-size-fits-all
According to the CFTC press release, FCMs participating in the pilot must submit weekly digital asset holdings and account classification reports within the first three months to facilitate regulatory authorities to grasp risks in real time. Acting Chairman Caroline Pham emphasized:
“This plan has established clear guardrails to ensure that while we embrace innovation, we can continue to protect the security of customer assets through strict monitoring and reporting mechanisms.”
The pilot also requires setting haircuts for BTC and ETH and implementing asset isolation and custody standards to avoid the impact of violent price fluctuations on the clearing system. The move shows a shift in regulatory strategy from total bans to risk management.
Legal thrust: The GENIUS Act tears down the wall
The trigger for the policy shift was the "GENIUS Act" signed by the Trump administration in the middle of this year. This law provides a clear legal basis for stablecoins and digital assets, forcing regulatory agencies to review the already out of touch "Staff Advisory 20-34". The CFTC therefore withdrew its old recommendation and issued a new "no objection position." Paul Grewal, Coinbase’s chief legal officer, believes that past restrictions have served as a “ceiling for innovation,” and the pilot program finally removes obstacles and allows the rules to respond to actual market needs.
Capital efficiency: 24/7 market is no longer stuck
For institutional investors, the most direct change is that the time difference in capital dispatch is eliminated. In the past, if Bitcoin experienced violent fluctuations on weekends, it would be difficult for investors to immediately remit U.S. dollars to pay margin. Now, they can directly use their BTC or USDC to respond to margin calls. Katherine Kirkpatrick Bos, general counsel at StarkWare, pointed out that this will promote atomic settlement and greater automation, significantly reducing the cost of tying up funds. Salman Banaei of Plume Network further emphasized that if the United States does not provide the same flexibility as the offshore market, pricing power may be transferred outward.
Although the pilot has only been in effect for a few months, it is regarded by the market as opening the door for tokenized assets to enter the clearing system. Circle CEO Heath Tarbert said:
“Stablecoins like USDC can effectively reduce friction in the settlement process and protect customers under a regulated framework.”
If the pilot goes well, the CFTC does not rule out making the rules permanent, and assets such as tokenized government bonds may also be included in the collateral pool in the future. This regulatory experiment is not only a test to increase capital efficiency, but also an offensive and defensive battle for the survival of financial pricing power.
In the U.S. dollar-based derivatives market, collateral determines the whereabouts of liquidity. When BTC and USDC are finally regarded as tools that can quantify risks and written into the rules, the US financial infrastructure completes an important puzzle. From now on, traders no longer have to buy stamps in the email era. The new foundation of Wall Street has been quietly replaced by an on-chain database.
