The CFTC approves the use of tokenized assets as collateral in the derivatives market

Source: CritpoTendencia Original Title: The CFTC Approves the Use of Tokenized Assets as Collateral in the Derivatives Market Original Link: In a historic decision, the Commodity Futures Trading Commission (CFTC) took a significant step for the cryptocurrency market. The agency will allow tokenized assets to be used as collateral in U.S. derivatives trading. The selected assets are Bitcoin, Ethereum, and the USDC stablecoin issued by Circle.

This advancement demonstrates the agency’s strong commitment to the development of digital asset trading. Additionally, the approval allows cryptocurrencies to penetrate even deeper into the core of the U.S. financial system. The CFTC emphasized that this is a pilot program for using cryptocurrencies as collateral, which includes assets within the tokenization category.

These assets correspond to real assets, such as commodities or Treasury bonds, represented by tokens minted on the blockchain. It is encouraging to see a continued intentional focus on creating clear changes for innovative developments in the U.S. derivatives markets, according to expert comments.

Thus, the CFTC’s initiative incorporates tokenized assets as a recognized part of the derivatives ecosystem. This decision strengthens the fundamentals of the cryptocurrency market and reinforces expectations of a mass adoption process by 2026, which could trigger a new large-scale rally.

Tokenized assets gain traction in the U.S. market

The momentum around blockchain-linked assets has become one of the main focuses of the CFTC. Last week, the agency’s interim chair, Caroline Pham, indicated that regulated exchanges had the green light to begin spot crypto trading within derivatives platforms.

It should be clarified that the CFTC can regulate derivatives products but not necessarily their underlying assets, except in cases of fraud or manipulation.

Regarding the use of tokenized assets as collateral, Pham explained that this framework aims to support innovation while maintaining the levels of protection that have characterized U.S. markets for decades.

It is important to highlight that the CFTC eliminated guidance to staff 20-34, a regulation that imposed restrictions on how firms could store and manage digital assets as collateral. This change came after the approval of the Genius law and the rapid advancement of tokenization technology.

From now on, numerous firms will be able to use tokenized assets that were previously strictly prohibited. This opens significant opportunities to expand the use of various blockchains within the derivatives market.

Overall, this move represents a strong boost for digital asset trading. The integration between cryptocurrencies and traditional finance could facilitate a more organic and less frictional mass adoption.