**News Flash: CFTC May Approve Digital Assets as Trading Collateral by Year-End**
The U.S. Commodity Futures Trading Commission (CFTC) could greenlight the use of digital assets as trading collateral by the end of the year. A subcommittee of the CFTC’s Global Markets Advisory Committee has recommended a proposal to allow digital ledger technology-based collateral in commodities and derivatives trading.
If approved, traders could use digital assets like BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) token to settle transactions swiftly. This move could mainstream the use of blockchain-based assets in trading, which is currently limited to big players like BlackRock and JP Morgan.
However, the main committee still needs to approve the subcommittee’s recommendation before it goes to the CFTC. There’s no certainty the proposal will pass or if restrictions will be placed on which institutes and blockchains can participate.
In related news, spot Bitcoin ETFs saw strong inflows in September, with BlackRock’s fund leading the pack. This trend underscores the growing acceptance of digital assets in traditional finance and could influence the CFTC’s decision.