CFTC Issues Guidance on Crypto Asset Collateral in Derivatives Markets

The CFTC has issued updated guidance on its pilot program, which aims to integrate crypto assets into derivatives markets.

The program currently only allows three categories of assets: Bitcoin, Ether, and stablecoins. Brokers must notify the regulator before accepting crypto collateral and report weekly on client holdings.

The use of crypto assets as collateral is still restricted, with a 20% haircut applying to BTC and ETH positions and a 2% requirement for stablecoins.