CFTC clarifies crypto collateral rules for derivatives

The Commodity Futures Trading Commission (CFTC) has released an FAQ detailing how futures commission merchants and clearinghouses can utilize digital assets as collateral in derivatives markets. This guidance aligns the CFTC's capital charge framework with recent SEC broker-dealer haircut guidance, establishing a 20% charge for bitcoin and ether and a 2% charge for payment stablecoins. Notably, firms can deposit proprietary payment stablecoins into customer accounts as residual interest, but other crypto assets like bitcoin or ether are restricted for this specific purpose.