TechFlow reports that on March 22, according to Cointelegraph, the U.S. Commodity Futures Trading Commission (CFTC) issued detailed guidance for its pilot program permitting digital assets as collateral. The regulator reiterated that futures commission merchants (FCMs) participating in the pilot must file a notice with the Division of Market Oversight specifying the date they begin accepting digital assets as margin. Key points include:
1. Capital requirements: Only Bitcoin, Ethereum, and stablecoins may be accepted as collateral. BTC and ETH are subject to a 20% capital charge, while stablecoins carry a 2% capital charge. During the first three months of the pilot, participating FCMs may only accept Bitcoin, Ethereum, or stablecoins as collateral.
2. Compliance and reporting obligations: FCMs participating in the pilot must promptly report material cybersecurity or systems issues and submit weekly reports on the total value of digital assets held in customer accounts.
3. Expansion after three months: Additional digital assets may be accepted as collateral starting three months into the pilot, and certain reporting requirements will terminate at that time.
4. Restricted use: Only designated payment stablecoins may be deposited into customers’ segregated accounts to cover residual equity. Digital assets may not be used as collateral for uncleared swaps; however, eligible tokenized assets may serve as substitutes.
5. Derivatives clearing organization requirements: Clearing organizations meeting the CFTC’s credit, market, and liquidity risk requirements may accept digital assets and stablecoins as initial margin for cleared transactions.
