The US Commodity Futures Trading Commission issues updated guidance for tokenized collateral in derivatives markets, allowing for a pilot program to test using cryptocurrencies like Bitcoin, Ether, and USDC as margin collateral. This move integrates crypto into regulated markets, providing protection, reducing frictions, and enhancing risk reduction for customers.

The CFTC also issues guidance on using tokenized assets as collateral in trading futures and swaps, covering real-world assets like US Treasury money market funds. This regulatory clarity opens the door for more digital assets to be added as collateral by exchanges and brokers, in addition to US Treasurys and money market funds.

Crypto executives, including Katherine Kirkpatrick Bos from StarkWare and Coinbase’s Paul Grewal, support the CFTC’s move, highlighting the benefits of tokenized collateral in derivatives markets. The action is seen as a major step towards wider adoption and the automation of settlement for OTC derivatives and swaps using blockchain technology.

Read more at Cointelegraph: CFTC Updates Rules to Launch Pilot Program for Crypto Collateral