The Federal Reserve just lost control of its most important tool: the collateral hierarchy.
For seventy years, the Fed’s power flowed from a single choke point - deciding what counts as “money good“ collateral. Treasury bonds. Agency MBS. Investment-grade corporates. But on December 8, 2025, CFTC changed that. It has approved Bitcoin, Ethereum, and USDC as collateral in the U.S. derivative market, without touching the traditional banking system at all. [ANNOUNCEMENT]
