CFTC Clarifies Requirements for Using Crypto Assets as Collateral in Pilot Project

The US Commodity Futures Trading Commission (CFTC) has released detailed guidance on the pilot project for using crypto assets as collateral.

According to the guidance, futures commission merchants (FCMs) participating in the pilot must submit a notice to the Market Participants Division, specifying the start date for accepting crypto assets as margin.

The requirements specify that only Bitcoin, Ethereum, and stablecoins can be accepted as collateral. BTC/ETH are calculated at a 20% capital adequacy rate, while stablecoins are at 2%. This will remain in place for at least three months.

During the first three months, FCMs participating in the pilot project can only accept Bitcoin, Ethereum, or stablecoins as collateral. After this period, other crypto assets may be used as collateral, and some reporting requirements will be terminated.