The CFTC just authorized Bitcoin, ETH, USDC only for US leverage, leaving XRP, SOL stranded in risky limbo
The United States has signaled a transparent distinction between crypto belongings appropriate for buying and selling and people greatest suited for use as collateral in the derivatives markets.
On Dec 8, the Commodity Futures Trading Commission (CFTC) authorized Futures Commission Merchants (FCMs) to simply accept Bitcoin, Ethereum, and USDC as eligible margin underneath a digital belongings pilot program.
The transfer brings these tokens into the operational framework used for futures and swaps clearing, inserting them alongside extra conventional types of efficiency bond, like Treasury Bills and gold, topic to risk-based changes.
Acting Chair Caroline Pham described the initiative as a part of an effort to make sure that crypto-linked leverage sits inside US chapter protections, segregation guidelines, and steady monitoring, relatively than in offshore environments.
According to her:
“This crucial has by no means been extra essential given latest buyer losses on non-US crypto exchanges.”
The Safe Harbor technique
The pilot goals to provide institutional merchants the choice to collateralize positions with belongings cleared underneath US oversight, relatively than counting on liquidation engines operated by offshore exchanges.
Under the brand new regime, BTC, ETH, and USDC could be posted as margin, topic to frequent reporting, custody necessities, and valuation “haircuts” designed to account for volatility and operational danger.
For policymakers, the strategy is meant to create a home various to high-volume offshore buying and selling venues whereas retaining the CFTC’s longstanding safeguards for leveraged derivatives exercise.
The program additionally establishes a framework for assessing tokenized collateral in follow, giving regulators visibility into how digital belongings carry out inside a system constructed for steady margin calls and intraday danger checks.
Heath Tarbert, President of Circle, mentioned:
“Deploying prudentially supervised cost stablecoins throughout CFTC-regulated markets protects prospects, reduces settlement frictions, helps 24/7 danger discount, and advances US greenback management by way of world regulatory interoperability. Enabling near-real-time margin settlement will even mitigate settlement-failure and liquidity-squeeze dangers throughout evenings, weekends, and holidays.
XRP, Solana, and Cardano are lacking
The pilot’s restricted asset set instantly drew consideration to what was not included.
Despite regulatory momentum in 2025, crypto belongings similar to Solana, XRP, and Ripple’s RLUSD stablecoin have been excluded from the primary tranche.
Market members mentioned the choice probably displays a conservative strategy to liquidity depth, volatility, and valuation ease during times of stress.
For context, analysts famous that XRP’s regulatory profile has developed considerably over the previous 12 months, but its eligibility as collateral would require the next threshold. This is as a result of collateral frameworks favor belongings that may be valued reliably and liquidated with out disrupting markets.
However, XRP’s home liquidity, whereas important, is materially decrease than BTC and ETH, which probably factored into this system’s early asset choice.
Moreover, the absence of RLUSD generated an analogous dialogue.
While Ripple’s payment stablecoin is gaining traction and was just lately included in Singapore’s expanded MPI licensing for cross-border companies, its home footprint stays small in contrast with USDC.
As a consequence, the CFTC might have opted to start with the stablecoin that at present serves as the first regulated greenback proxy in US on-chain markets.
Still, Ripple management has publicly embraced the pilot as a victory for the broader crypto business.
Jack McDonald, SVP of Stablecoins at Ripple, mentioned:
“By recognizing tokenized digital belongings—together with stablecoins—as eligible margin, the CFTC is offering the regulatory readability wanted to maneuver the business ahead. This step will unlock higher capital effectivity and solidify US management in monetary innovation. At Ripple, we look ahead to persevering with to associate with the CFTC and the business to make sure the secure and accountable scaling of digital belongings.”
The tone of this response suggests Ripple views the pilot not as a closed door, however as a “proof of idea” section.
By validating the mechanism of tokenized collateral utilizing USDC, the CFTC is constructing the rails that different stablecoins, like RLUSD, may finally trip as soon as they meet the requisite liquidity thresholds.
Meanwhile, the CFTC didn’t remark instantly on the rationale for particular exclusions. However, the slender checklist aligns with the pilot’s acknowledged goal of assessing tokenized collateral by way of a tightly managed set of belongings earlier than contemplating broader growth.
A brand new panorama
The CFTC’s pilot offers the United States with an outlined mechanism to check tokenized collateral inside its derivatives clearing structure.
It additionally establishes the primary contours of a regulatory hierarchy: some belongings could be traded underneath supervision, whereas fewer nonetheless can function collateral for margining.
For the business, the pilot is each a milestone and a constraint. It brings digital belongings nearer to the core of US monetary infrastructure whereas additionally clarifying the requirements required to attain that degree of depth, stability, custody readiness, and predictable conduct underneath stress.
Essentially, the pilot exhibits that Washington is ready to convey digital belongings into its market construction, however it would accomplish that selectively, and in levels, with liquidity and danger administration figuring out the tempo
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