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Regulations & Policies

CFTC Details How FCMs Can Handle Crypto, Stablecoins as Collateral

The guidance spells out what FCMs may count toward customer deficits, where stablecoins are allowed, and which restrictions still remain in place.

Written By:
Shubham Soni

Last updated: March 21, 2026 10:51 AM
Published March 20, 2026 10:01 PM
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Last updated: March 21, 2026 10:51 AM
Published March 20, 2026 10:01 PM
CFTC Details How FCMs Can Handle Crypto, Stablecoins as Collateral

Key Highlights

  • CFTC clarified that FCMs may use customer crypto, with haircuts, to cover margin deficits in regulated futures and swaps accounts.
  • Payment stablecoins are allowed only in a limited role as proprietary residual interest in segregated customer accounts.
  • Crypto and stablecoins still cannot be used as collateral for uncleared swaps or as general investments of customer funds.

The Commodity Futures Trading Commission’s staff today published a new set of FAQs laying out how registered firms and clearing entities can handle crypto assets and blockchain-based collateral arrangements.

According to the official announcement, the guidance adds detail to two earlier staff letters and gives futures market participants a clearer framework for using crypto and payment stablecoins inside regulated derivatives markets.

The update is centered on futures commission merchants (FCMs) and clarifies when they may count customer crypto holdings toward margin requirements, debit balances, and segregated account treatment.

FCMs can use customer crypto to cover deficits

The most immediate takeaway is that FCMs relying on CFTC Staff Letter 26-05 may apply the value of a customer’s non-security crypto assets, after required haircuts, to secure debit or deficit balances in futures, foreign futures, and cleared swaps accounts.

This clarification extends earlier guidance that allowed certain crypto assets to be counted when determining whether an account was undermargined. The new FAQ makes clear that those assets may also be used in deficit calculations, provided firms follow the valuation and haircut framework already outlined in the no-action letter.

Stablecoins get limited approval inside segregated accounts

The FAQs also draw a narrow path for payment stablecoins. Staff said they would not recommend enforcement action if an FCM deposits its own payment stablecoins into segregated customer accounts as residual interest, so long as the firm applies the required capital treatment. The guidance adds that staff would not object to a capital charge of at least 2% of market value for those proprietary stablecoin positions.

That flexibility does not apply more broadly across crypto. The same FAQ states that FCMs may not deposit proprietary bitcoin, ether, or other crypto assets into customer segregated accounts as residual interest. Only payment stablecoins qualify for that use.

Customer funds still cannot be invested in stablecoins

While stablecoins are permitted in a limited residual-interest role, the CFTC did not expand the list of permitted investments for customer funds. The staff said FCMs may not invest customer funds in payment stablecoins, leaving existing investment restrictions under Commission Regulation 1.25 unchanged.

This means stablecoins can enter the structure only in specific circumstances and not as a general-purpose investment option for customer assets.

Uncleared swaps remain outside the framework

The guidance also shuts the door on using crypto assets as margin for uncleared swaps between swap dealers and financial end users. The staff said crypto assets, including payment stablecoins, are not eligible collateral under the existing rules for uncleared swaps.

At the same time, the FAQ says tokenized versions of already eligible collateral assets may still be exchanged, as long as they carry the same or functionally equivalent legal and economic rights as the traditional asset.

Bigger picture

The FAQs do not amount to a broad rewrite of U.S. crypto derivatives policy. What they do provide is a more detailed operating guide for firms already trying to use digital assets inside regulated margin and collateral systems.

In practice, the message is incremental: the CFTC is allowing more defined uses of crypto and stablecoins in cleared derivatives infrastructure, but only with reporting, haircuts, asset limits, and segregation controls still firmly in place.

Also Read: SEC and CFTC Give Crypto Industry What It Wanted: New Crypto Rules

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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Shubham Soni Crypto Content Editor
By Shubham Soni
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Shubham Soni is a veteran content editor and journalist with over three years of experience leading digital editorial strategies across the U.S. and Indian markets. With a background in high-pressure newsrooms, Shubham specializes in the rigorous fact-checking, structural editing, and narrative development of complex news and explainers. Throughout his career at prominent digital publications like Sportskeeda and Opoyi, he has managed fast-paced desks covering global politics, sports, and entertainment. His expertise lies in transforming technical information into accessible, high-impact reporting while maintaining strict adherence to editorial ethics and accuracy. At The Crypto Times, Shubham oversees the editorial workflow, mentoring writers to ensure all cryptocurrency research and analysis meets the highest standards of clarity and journalistic integrity.

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