The US Commodity Futures Trading Commission (CFTC) has initiated a new pilot program allowing Bitcoin, Ether, and USDC to be accepted as collateral in the derivatives market. This move aims to enhance transparency and implement protective measures within the financial market. Acting Chair Caroline Pham announced the program, emphasizing clear terms and conditions designed to provide companies with a secure and regulated framework. With the growing use of digital cryptocurrencies in financial markets, this initiative represents a significant step toward integrating these assets into the formal financial system. While Bitcoin and Ether have primarily been used for investment and trading, their acceptance as collateral has been limited. USDC, a stablecoin pegged to the US dollar, offers a stable option for financial transactions. The pilot program is expected to strengthen the legal status of cryptocurrencies, offer financial institutions new investment opportunities, increase liquidity, and introduce clear regulations to mitigate financial risks. Despite these benefits, the inherent volatility and potential security concerns of the crypto market will continue to be closely monitored. This is the first program of its kind launched by a US financial regulator and is anticipated to inspire similar models internationally. Market experts believe this development will boost the legal acceptance of cryptocurrencies and enhance their integration into the global financial system.
Source: coindesk
