On Monday, the Commodity Futures Trading Commission did something it's never done before. Acting Chair Caroline Pham announced a pilot program that lets approved futures commission merchants accept Bitcoin (BTC), Ethereum (ETH), and payment stablecoins like USDC as collateral for futures and swaps. It's the kind of regulatory greenlight that usually sends crypto bulls into euphoria mode.
So why is Bitcoin still languishing around $90,000?
The Regulatory Milestone Everyone Wanted
This isn't just another incremental update. The CFTC's program provides what Pham called "clear guardrails" for tokenized collateral while expanding oversight of customer asset protection. Approved firms have to follow strict custody and reporting rules, including weekly disclosures during the first three months of participation.
The agency also issued updated guidance for tokenized real-world assets like U.S. Treasuries and withdrew a 2020 advisory that had restricted the use of digital assets as collateral. That's a significant policy reversal.
The move follows the GENIUS Act, which overhauled federal treatment of tokenized assets and enabled new forms of market participation. Coinbase Inc. (COIN) Chief Legal Officer Paul Grewal said the "unlock" aligns with Congress's intentions under the updated framework.
What This Actually Means for Crypto Markets
Here's why this matters: the program marks the first formal U.S. allowance for tokenized collateral in major regulated markets. It also introduces a path for firms to hold digital assets in segregated customer accounts under limited no-action relief from the CFTC.
In practice, a regulated intermediary could now accept Bitcoin as margin for a commodity swap, while the CFTC supervises custody, valuation, and capital risk controls behind the scenes. The move widens Bitcoin's role inside traditional finance and may encourage broader institutional trading activity.
It's the kind of infrastructure development that builds legitimacy over time, even if it doesn't spark immediate price fireworks.
The Technical Picture Tells a Different Story
Bitcoin remains stuck in a weak zone despite the regulatory catalyst. BTC attempted a breakout above the falling trendline yesterday, but failed to sustain momentum, slipping back under the structure within a day.
A breakout that cannot hold even one or two sessions is generally treated as weak.
The 20- and 50-day exponential moving averages cluster near $90,400–$91,000, forming a resistance band alongside the 0.382 Fibonacci level at $90,799. BTC has rejected this area multiple times. A close above $93,500 would be required to shift trend structure and signal real improvement.
Moreover, the Supertrend indicator is red, and parabolic SAR markers sit above the price. Until these flip, upside attempts are considered counter-trend moves.
The Levels That Matter Right Now
The $90,000 region is the main battleground as traders test the strength of the current structure. Bitcoin's breakdown below $90,000 exposes $88,500 support, and losing that level risks a fast drop toward $86,800 and then $84,900 due to thin structure underneath.
Upside improves only if Bitcoin holds above $93,500—the level that would invalidate the current descending pattern and open the path toward the next resistance area around $97,100.
So while the CFTC just handed crypto a regulatory win that could reshape how digital assets integrate with traditional finance, Bitcoin itself is stuck in technical purgatory. Sometimes the market cares more about momentum than milestones. Right now, the charts are winning that argument.