Rich by Coin

On March 20, 2026, the CFTC Market Participants Division (MPD) and Division of Clearing and Risk issued FAQs clarifying guidance previously provided in CFTC Staff Letters regarding the use of crypto assets as collateral in derivatives markets by certain regulated entities. This GT Alert summarizes the key takeaways. Futures Commission Merchants (FCMs) relying on Staff Letter 26-05 may apply the value of a customer’s non-security crypto assets, after applicable haircuts, deposited to margin futures, foreign futures, or cleared swaps accounts to secure customer debit or deficit account balances. FCMs may deposit proprietary payment stablecoins as residual interest in customer segregated accounts, subject to a minimum 2% capital charge on market value.

FCMs may NOT deposit proprietary crypto assets (e.g., bitcoin or ether), other than payment stablecoins, as residual interest in customer segregated accounts. Only proprietary payment stablecoins may be deposited in such accounts. FCMs may only deposit payment stablecoins in segregated accounts if the payment stablecoins represent the FCM’s residual interest in the accounts. Permitted investments under applicable CFTC regulations remain unchanged.

Minimum capital charges for proprietary positions are 20% for bitcoin and ether and 2% for payment stablecoins. This aligns with the Securities and Exchange Commission’s parallel framework for broker-dealers. Crypto assets, including payment stablecoins, remain ineligible as initial or variation margin for uncleared swaps under applicable CFTC regulations. Derivatives Clearing Organizations (DCOs) may accept crypto assets, including payment stablecoins, as initial margin for cleared transactions, provided such assets meet the minimal credit, market, and liquidity risk requirements of applicable CFTC regulations.