US CFTC Releases Cryptocurrency and Blockchain FAQ, Clarifying that FCMs Can Accept BTC, ETH, and Stablecoins as Margin

Techub News reports that, according to the FAQ document released by the CFTC, the Market Participants Division and the Clearing and Risk Division have further clarified the application of crypto assets and blockchain technology under the Commodity Exchange Act: this FAQ allows futures commission merchants (FCMs), relying on Employee Letter No. 26-05, to accept non-security crypto assets (including payment stablecoins, Bitcoin, and Ethereum) from clients as margin, and to use them to secure client debit or deficit account balances. Regarding regulatory capital calculations, the CFTC aligns with the SEC, setting a capital deduction rate of 20% for Bitcoin and Ethereum, and 2% for payment stablecoins.

The document emphasizes the definition of payment stablecoins, requiring that before the GENIUS Act takes effect, such stablecoins must be issued by state- or federally-regulated institutions, with reserve assets limited to cash or U.S. Treasury securities, and monthly attestations must be provided; after the act takes effect, they must meet the specific requirements of the act. Additionally, while FCMs can deposit their own payment stablecoins into customer segregated accounts as residual equity, it is explicitly prohibited to invest customer funds directly in payment stablecoins, and crypto assets are currently not classified as eligible collateral for uncleared swaps. Derivatives Clearing Organizations (DCOs) accepting crypto assets as initial margin must set their own capital deduction rates and evaluate their risk monthly. FCMs intending to participate in such activities must report to the CFTC before starting, and during the initial three-month period, they are limited to handling only the three aforementioned asset types and must submit weekly position reports.