Use of Bitcoin as Collateral in Derivative Markets, U.S. CFTC Launches Tokenization Pilot Program

On December 8, Acting Chair Caroline Pham of the U.S. Commodity Futures Trading Commission (CFTC) announced the launch of a pilot program that will use cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and USDC as collateral in the derivatives market. New guidance on tokenized collateral has also been issued, eliminating outdated requirements due to the enactment of the Genius Act. Following last week's announcement about the commencement of cryptocurrency spot trading at CFTC-registered exchanges, Acting Chair Pham stated that this pilot program introduces tokenized collateral including BTC and ETH, aiming to protect customer assets...