Regulatory Landscape: CFTC Initiatives and Tax Evasion Risks

The Commodity Futures Trading Commission has launched a pilot program to allow select digital assets—Bitcoin, Ether, and USDC—to be used as collateral in U.S. derivatives markets. According to CoinDesk, this initiative, announced by Acting Chairman Caroline Pham, aims to establish clear guidelines for using tokenized collateral while enhancing monitoring and reporting requirements for futures commission merchants.

Participating firms will need to provide weekly disclosures on their digital asset holdings. Additionally, the CFTC has withdrawn older guidance that previously restricted the use of cryptocurrencies as collateral, which is now seen as outdated following the passage of the GENIUS Act.

Meanwhile, the Canadian Revenue Agency revealed that 40% of crypto users are at risk of tax evasion, with authorities struggling to enforce compliance due to limitations in identifying taxpayers engaged in crypto activities.

The CRA has initiated audits resulting in significant tax recoveries, totaling $100 million over the last three years. In response to these evolving challenges, the Canadian government announced plans for new legislation aimed at improving oversight of crypto transactions, set to be introduced by Spring 2026.

These developments are critical in shaping the regulatory landscape and fostering market trust in cryptocurrencies.