US CFTC considers allowing digital assets as collateral for trades, a positive sign for the market

It has been reported that the U.S. Commodity Futures Trading Commission (CFTC) may allow digital assets as trading collateral by the end of this year.
According to foreign media such as Bloomberg, the CFTC's Global Market Advisory Committee (
A subcommittee under the Global Markets Advisory Committee recently proposed allowing digital ledger technology-based collateral in commodities and derivatives trading.
The proposal has several steps to go before it can be approved, but if passed, it could be a huge boon for the digital asset market.
If approved, traders will be able to use digital assets as collateral and settle transactions with the same speed and convenience as digital forma ledger and blockchain-based transactions.
The broker is BlackRock's BlackRock USD Institutional Digital Liquidity Fund.
Blockchain-based tokenized assets such as (BUIDL) can be accepted through the marketplace’s built-in system.
The use of blockchain-based assets as collateral is already fairly common in participating markets.
Participation has been limited to large firms like BlackRock and JPMorgan Chase, and a general endorsement from the CFTC could act as a catalyst for mainstream adoption.
However, at this time it is unclear what specific recommendations the Global Market Advisory Committee made or what is included in the aforementioned proposals.
The subcommittee's recommendations still need to be approved by the full committee before the proposal can be formally submitted to the CFTC, according to Bloomberg.
It remains to be seen whether the CFTC will approve the proposal and whether there will be any restrictions on specific institutions or blockchains in the approval process.