CFTC Deepens Crypto Push With Approval of Derivatives Collateral

The Commodity Futures Trading Commission will allow Bitcoin, Ether, and the dollar-pegged stablecoin USDC to be used as collateral for derivatives trades, a decision that pushes crypto deeper into the plumbing of US finance.

The pilot project initiative, issued as a package of two staff advisories and a no-action letter sent to Coinbase Financial Markets Inc., applies to futures brokers, swap market participants and clearing houses. The collateral-related guidance also includes tokenized versions of US Treasuries and money-market funds, with clear requirements for asset segregation, reporting and surveillance.

“It’s encouraging to see a continued intentional focus on creating clear ...