What Did the CFTC Clarify in Its New FAQ?
Staff at the Commodity Futures Trading Commission published a set of frequently asked questions outlining how futures commission merchants and clearinghouses should handle crypto assets used as collateral in derivatives markets. The guidance builds on two staff letters issued in December 2025 that enabled a pilot allowing bitcoin, ether, and USDC to be posted as collateral.
The FAQ was issued jointly by the agency’s Market Participants Division and Division of Clearing and Risk and focuses on operational details rather than introducing new rules. It clarifies how firms should apply capital charges, what types of crypto can be used in specific account structures, and how reporting and onboarding should work under the existing no-action framework.
The document does not create binding obligations, but it provides a clearer framework for firms that have been waiting for practical direction on how to integrate digital assets into regulated derivatives infrastructure.
How Are Capital Charges for Crypto Being Set?
One of the most direct outcomes of the FAQ is alignment with the Securities and Exchange Commission’s recent broker-dealer guidance on capital haircuts. Futures commission merchants holding proprietary positions in bitcoin or ether are expected to apply a minimum 20% capital charge, while payment stablecoins receive a 2% charge.
The CFTC staff noted that consistency across agencies is important, pointing to the SEC’s February guidance that set the same haircut levels. A haircut is the percentage reduction applied to an asset’s value when used as collateral, reflecting its perceived risk and volatility.
This alignment follows a broader pattern of coordination between the two regulators. The SEC and CFTC recently formalized cooperation through a memorandum of understanding, and both agencies have indicated they are working toward a shared classification framework for crypto assets.
Investor Takeaway
What Can and Cannot Be Used in Customer Accounts?
The FAQ draws clear boundaries around how crypto can be handled in segregated customer accounts. Futures commission merchants are allowed to deposit their own payment stablecoins as residual interest, subject to a 2% capital charge. However, they are not permitted to deposit other crypto assets such as bitcoin or ether for that purpose.
At the same time, firms are not allowed to invest customer funds in payment stablecoins. The existing list of permitted investments under Commission Regulation 1.25 remains unchanged, limiting how customer collateral can be deployed.
For uncleared swaps, the framework is more restrictive. Swap dealers cannot use crypto assets, including stablecoins, as margin collateral. The only exception applies to tokenized versions of already eligible assets, provided they carry the same legal and economic characteristics as their traditional equivalents.
How Does the Framework Apply to Clearinghouses and FCMs?
Derivatives clearing organizations are permitted to accept crypto as initial margin for cleared trades, as long as those assets meet existing standards for credit quality, liquidity, and market risk. Clearinghouses are responsible for setting their own haircuts, with requirements for regular review and stress testing.
Futures commission merchants that want to operate under the no-action framework must first file a notice through the CFTC’s electronic system. They then enter a three-month initial period during which they can only accept payment stablecoins, bitcoin, and ether from customers. During that phase, firms must also report operational or cybersecurity issues and submit weekly disclosures on crypto holdings across customer accounts.
After the initial period, those restrictions are lifted, allowing firms to expand the range of accepted crypto assets. This staged approach gives regulators visibility into how the framework functions before broader adoption.
Investor Takeaway
How Is a “Payment Stablecoin” Defined?
The FAQ introduces a two-step definition for payment stablecoins. Before new federal legislation takes effect, a qualifying stablecoin must be denominated in US dollars, issued by a regulated entity such as a state money transmitter or trust company, backed by reserves in cash or US Treasuries, and supported by monthly reserve attestations.
Once the GENIUS Act is implemented, the definition will transition to the framework established under that law, tying eligibility directly to federal standards for stablecoin issuers.
The underlying no-action position that enables these rules originated from a December 2025 request involving Coinbase Financial Markets and clearinghouse Nodal Clear, which were working to make USDC eligible as collateral in US futures markets.
What Comes Next for Crypto in Derivatives Markets?
While the FAQ does not create new binding rules, it provides a detailed operational reference point for firms exploring the use of digital assets in derivatives trading. The guidance outlines how existing regulations apply rather than rewriting them, offering a pathway for integration without formal rulemaking.
That said, the key implication for market participants is that crypto collateral is being accommodated within traditional risk frameworks rather than treated as a separate category. That approach may support gradual adoption, especially among firms that require regulatory clarity before expanding into digital asset use cases.
The document also signals that further coordination between US regulators is likely, particularly as both agencies continue work on shared definitions and oversight structures for crypto assets within financial markets.
