CFTC modernizes collateral rules for digital assets in U.S. derivatives markets

The U.S. Commodity Futures Trading Commission (CTFC) rang in the new year under new leadership and with a fresh approach to digital assets. The close of 2025 marked a pivotal shift in the U.S. derivatives regulatory landscape as the CFTC unveiled a coordinated suite of actions modernizing the treatment of digital assets and tokenized real‑world assets in derivatives markets. 

Major reform to digital asset collateral rules

Issued under then‑Acting Chair Caroline Pham, CFTC Letters 25‑39, 25‑40, and 25‑4, together with the subsequent withdrawal of earlier “actual delivery” guidance, signal the most consequential reforms to U.S. digital asset collateral rules to date. 

These measures broadly aim to align regulatory frameworks with evolving market practices, expand the permissible use of digital assets in margin and collateral contexts, and support the continued institutionalization of blockchain‑based settlement models.

Guidance on use of tokenized assets

CFTC Letter 25‑39 provides comprehensive guidance on the use of tokenized assets—digital representations of traditional financial instruments such as Treasuries, corporate bonds or money market fund shares—as regulatory collateral. 

The CFTC emphasizes that tokenization does not alter the fundamental character of an underlying asset and that existing collateral rules apply irrespective of technology. Tokenized assets remain eligible for use as margin where firms can demonstrate legal enforceability, appropriate custody and segregation arrangements, and robust operational capabilities. 

Importantly, the CFTC affirms that tokenized collateral should be subject to risk‑based haircuts comparable to their non‑tokenized equivalents, adjusted only for differences in settlement timing, liquidity or risk profile. The guidance also underscores the need for market participants to ensure technical readiness, including the ability to withstand cybersecurity and network‑wide threats.

Payments stablecoins as customer margin collateral

CFTC Letter 25‑40 represents a significant liberalization of the U.S. regime by offering no‑action relief permitting Futures Commission Merchants (FCMs) to accept certain digital assets—specifically payment stablecoins, Bitcoin and Ether—as customer margin collateral. The relief also allows FCMs to deposit their own payment stablecoins into segregated customer accounts as residual interest, subject to strict conditions. 

These include valuation and capital charge requirements, mandatory notice filings, a three‑month transitional restriction limiting the range of eligible digital assets, weekly reporting via the WinJammer system and prompt notification of operational or cybersecurity incidents. 

While expansive in effect, the relief is expressly temporary and will expire once the CFTC adopts rules addressing digital asset collateral, potentially as part of implementing the GENIUS Act, the new U.S. stablecoin framework enacted in 2025.

Virtual currency as margin collateral

CFTC Letter 25‑41 withdraws Staff Advisory 20‑34 in full, eliminating prior limitations that had largely prevented FCMs from holding or accepting virtual currency as margin collateral. The CFTC cites the maturation of digital asset markets, progress made through its tokenized collateral initiative and the new federal stablecoin framework as justification for removing the outdated restrictions. Together, these changes open the door to significantly broader use of digital assets within cleared and uncleared derivatives markets.

Separately, on 11 December 2025, the CFTC withdrew its 2020 interpretive guidance on what constitutes “actual delivery” for leveraged retail virtual currency transactions. Although the agency may issue new FAQs in due course, the withdrawal leaves market participants navigating temporary uncertainty.

Looking ahead

These regulatory updates align with a broader push toward integrating digital assets into mainstream financial market infrastructure, accelerating adoption of tokenized real‑world assets, expanding stablecoin usage and supporting the long‑term shift toward blockchain‑based collateral mobility and continuous settlement.

The momentum is expected to continue with the appointment of Michael Selig as the new Acting Chairman of the CFTC, confirmed by the U.S. Senate on December 18, 2025, and officially sworn in on December 23. After Acting Chairman Pham left the CFTC to become Chief Legal Officer and Chief Administrative Officer at MoonPay, Selig also became the sole CFTC Commissioner.

Read more in our client note: The CFTC Modernizes its Approach to Digital Assets as Collateral | Linklaters