The US Commodity Futures Trading Commission (CFTC) has announced the launch of a new “Digital Asset Pilot Program,” allowing select cryptocurrencies to be used as collateral in the derivatives market. Initially, Bitcoin, Ethereum, and USDC are included in the program. This initiative aims to maintain the prominence of the US financial market globally and promote the growth of the national economy. Acting Chair Caroline Pham emphasized the importance of adopting responsible innovation to ensure the US financial markets remain leaders worldwide and open doors to economic development. Futures commission merchants participating in the program must submit weekly reports detailing the extent of digital assets held in customer accounts, including futures, cleared swaps, and any operational or system issues impacting the collateralization of digital assets. This move is significant for the crypto sector as it facilitates the integration of cryptocurrencies into the derivatives market, offering investors a more diverse and active marketplace. While previous efforts by financial institutions and regulators have aimed to incorporate cryptocurrencies into the formal financial system, this program represents a structured and transparent step forward. Although currently limited to a few cryptocurrencies, successful implementation could pave the way for broader inclusion of digital assets in the market, enhancing transparency and financial stability through compliance and reporting requirements. This development marks a key milestone in expanding cryptocurrency usage within the US financial system and advancing innovative financial products.
Source: binance
