CFTC Starts Crypto Collateral Pilot With CEO Council

• CFTC forms a CEO council to study crypto, tokenization and 24/7 markets
• New pilot lets brokers post BTC, ETH and USDC as in-kind collateral under strict limits
• Fresh guidance sets common rules for tokenized Treasuries, funds and stablecoins in derivatives

The Commodity Futures Trading Commission has assembled a CEO Innovation Council to give the regulator direct access to executives running fast-growing digital-asset and tokenization platforms. The group’s formation within two weeks reflects concern that crypto markets, prediction venues, and tokenized products are now shaping core derivatives activity, not just sitting at the edges of finance.

The council’s mandate focuses on how crypto trading, tokenized instruments, and round-the-clock markets affect liquidity, margin, and risk management in U.S. derivatives. Members include leaders from both traditional venues and crypto-native platforms, creating a forum where Chicago futures houses and new on-chain exchanges describe the same market from different angles.

Related: Senate Set to Confirm Trump’s CFTC and FDIC Picks; ‘CLARITY Act’ to Redefine Crypto Oversight

The CFTC invited senior figures from Polymarket, Gemini, and Kraken alongside executives from Nasdaq, Intercontinental Exchange, CME Group, and Cboe Group. 

Commissioner Caroline Pham, who was appointed acting chair of the CFTC, acknowledged the executives who agreed to participate. She said their involvement will help the agency evaluate developments linked to tokenization, prediction markets, perpetual contracts, and blockchain infrastructure.

New CFTC Crypto Collateral Pilot For BTC, ETH And USDC

The council’s launch coincides with a separate CFTC pilot program allowing registered Futures Commission Merchants to accept Bitcoin, Ether, and USDC as in-kind collateral for contracts denominated in those same assets. Pham described the program as limited in scope and subject to enhanced oversight. Under the rules, firms must provide weekly position data and report any operational issues related to digital-asset collateral during the three-month trial period.

Pham stated that the program does not permit crypto assets to replace cash margin, nor does it authorize cross-asset pairs, such as using Bitcoin to collateralize Ether-denominated contracts.

CFTC Guidance Sets Standards For Tokenized Treasuries And Stablecoins

Alongside the pilot, the agency issued guidance outlining how tokenized real-world assets, including U.S. Treasuries, money-market funds, stablecoins, and similar instruments, should be assessed under existing CFTC requirements. The structure draws on recommendations delivered last year by the Global Markets Advisory Committee, whose members include major banks, asset managers, and select crypto firms.

The guidance applies long-standing standards covering liquidity, legal enforceability, and margin treatment. Pham noted that these expectations are intended to prevent inconsistent approaches as firms explore tokenization within regulated derivatives markets.

Related: CFTC Approves BTC, ETH and USDC as Margin Collateral, 2020 Ban Withdrawn