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

Source: CritpoTendencia Original Title: The CFTC Approves Use of Tokenized Assets as Collateral in Derivatives Market Original Link: In a historic decision, the Commodity Futures Trading Commission (CFTC) took a significant step forward 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 developing digital asset trading. Furthermore, the approval enables cryptocurrencies to penetrate even deeper into the core of the U.S. financial system. The CFTC emphasized that this is a pilot program for the use of cryptocurrencies as collateral, including assets within the tokenization category.

These are actual assets, such as commodities or Treasury bonds, represented by tokens issued on the blockchain. It is encouraging to see a continued deliberate focus on creating clear changes for innovative developments in the U.S. derivatives markets, according to industry experts’ comments.

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

Tokenized assets gain traction in the U.S. market

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

It’s worth clarifying that the CFTC can regulate derivatives products but not necessarily their underlying assets, except in cases of fraud or manipulation.

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

It is also noteworthy that the CFTC eliminated advisory guidance 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, many 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 more organic and frictionless mass adoption.