CFTC Advances Crypto Integration by Approving Derivatives Collateral

In a significant move that weaves cryptocurrencies deeper into the US financial structure, the Commodity Futures Trading Commission (CFTC) has sanctioned the use of Bitcoin, Ether, and the stablecoin USDC as collateral in derivatives trading.

New Guidelines for Market Participants

This change comes in the wake of new advisories and a no-action letter, which were formally provided to Coinbase Financial Markets Inc. Notably, these guidelines pertain to brokers involved in futures markets, swap market players, and clearing entities. The policies also encompass tokenized forms of US Treasury securities and money-market funds.

The directives clearly delineate standards for asset segregation, comprehensive reporting, and ongoing monitoring. This framework is part of an effort to maintain stability and transparency within the modernizing market infrastructures.