CMC News

CFTC Details Rules for Using Crypto as Derivatives Margin

The U.S. Commodity Futures Trading Commission published a set of frequently asked questions on Friday, laying out the operational rules for using #crypto assets as collateral in derivatives markets. The document was issued jointly by the agency's Market Participants Division and Division of Clearing and Risk.

The FAQ addressed questions that arose from two staff letters published in December 2025. Those letters established a pilot program allowing Bitcoin, Ether, and USDC to be posted as collateral for derivatives positions. The pilot originated from a December 2025 request involving Coinbase Financial Markets and clearinghouse Nodal Clear, which had been working to make #USDC accepted as collateral for U.S. futures trading.

Futures commission merchants wishing to join the pilot must file a notice through the #CFTC's WinJammer electronic filing system before accepting any crypto from customers as margin. That notice must include the date on which the firm will begin accepting crypto assets. Weekly reports on total crypto holdings across all customer account types are also required during the initial phase.

For the first three months of participation, firms can only accept $BTC, $ETH, and payment #stablecoins as collateral. They must also provide prompt notice of any significant cybersecurity or system issues. After the three-month period, those restrictions are lifted, and firms may expand to other crypto assets, while the weekly reporting requirement ends.

The FAQ aligned the CFTC's capital charge framework with that of the SEC. Futures commission merchants holding proprietary positions in $BTC or $ETH must apply a minimum 20% capital charge. #Payment stablecoins carry a 2% charge. That alignment follows a memorandum of understanding that the SEC and CFTC signed on March 11 to formalize coordination on crypto policy.