Key Highlights
- The CFTC has withdrawn outdated rules that had restricted the use of cryptocurrencies like Bitcoin in regulated markets.
- The CFTC has rescinded a 2020 policy that limited regulated brokers from easily accepting cryptocurrencies like Bitcoin as customer collateral
- CFTC has recently launched a new Digital Asset Pilot Program
On December 11, the U.S. Commodity Futures Trading Commission (CFTC) announced the withdrawal of outdated rules that had restricted the use of cryptocurrencies like Bitcoin in regulated markets.
“CFTC is withdrawing outdated guidance related to actual delivery of ‘virtual currencies,’ given the substantial developments in crypto asset markets,” stated the official announcement.
“Eliminating outdated and overly complex guidance that penalizes the crypto industry and stifles innovation is exactly what the Administration has set out to do this year,” said Acting Chairman Pham. “Today’s announcement shows that with decisive action, real progress can be made to protect Americans by promoting access to safe U.S. markets.”
This announcement directly comes after CFTC Staff Advisory No 20-34, which is a policy from 2020 that has placed strict limits on how futures commission merchants could accept virtual currencies from customers.
The agency called the old rules outdated guidance and no longer relevant by citing the approval of the new federal stablecoin law, GENIUS Act, and substantial maturation of the digital asset markets since the advisory was issued.
CFTC Rolls Out A New Pilot Program with Strict Guidelines
The withdrawal of outdated guidance comes after the agency took the decision to replace a structured Digital Assets Pilot Program. This initiative will provide a clear framework for regulated brokers to accept digital assets as margin collateral for derivatives like futures and swaps.
Acting Chairman Pham stated in the press release, “Today, I am launching a U.S. digital assets pilot program for tokenized collateral, including bitcoin and ether, in our derivatives markets that establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting. The CFTC is also providing regulatory clarity through tokenized collateral guidance for real world assets like U.S. Treasuries, and withdrawing CFTC requirements that are now outdated under the GENIUS Act.”
For the first few months of the program, the eligible assets are strictly limited to Bitcoin (BTC), Ethereum (ETH), and the USD-pegged stablecoin USDC. Firms who chooses to participate must follow their rules to improve oversight. They are required to file weekly reports to the CFTC detailing their holdings of these digital assets in customer accounts. They must also inform regulators of any major operational issues.
This pilot program will function under a no-action position from the CFTC’s Market Participation Division, which provides temporary regulatory relief so the agency can study the use of crypto collateral in real-world conditions.
Crypto Sector Praises Regulatory Clarity
The announcement of the pilot program was welcomed by the cryptocurrency sector.
“The CFTC’s decision confirms what the crypto industry has long known: That stablecoins and digital assets can make payments faster, cheaper, and reduce risk,” Paul Grewal, Coinbase Chief Legal Officer, said. “We applaud Acting Chair Caroline Pham and the CFTC for swiftly recognizing that tokenized innovation is the future of finance, and thank Acting Chair Caroline Pham for her leadership and vision. This major unlock is precisely what the Administration and Congress intended the GENIUS Act to enable—and will allow digital innovation to transform and improve traditional areas of finance. We encourage other regulators to quickly follow suit.”
The pilot program is part of Acting Chairman Pham’s “Crypto Sprint.” It is an initiative to implement recommendations from a presidential working group on digital assets.
Earlier in 2025, the CFTC withdrew another outdated advisory from 2018 related to the listing of virtual currency derivatives by stating that staff had gained sufficient experience and the market had matured.
