Crypto Times Logo Black
Google News Follow Banner
  • News
    • Market
    • Bitcoin
    • Ethereum
    • Altcoins
    • Regulations & Policies
    • DeFi News
    • Blockchain News
    • Industry
  • Exclusive
    ExclusiveShow More
    Inside the High-Stakes Corporate War Over the GENIUS Act
    Inside the High-Stakes Corporate War Over the GENIUS Act
    From Demonetization to Digital Rupee India's Decade-Long Blockchain Journey
    From Demonetization to Digital Rupee: India’s Decade-Long Blockchain Journey
    The 7% Premium Trap Exposed How India Makes Crypto More Expensive Than Dollars
    The 7% Premium Trap Exposed: How India Makes Crypto More Expensive Than Dollars
    GENIUS Act Scorecard What US Regulators Have Done So Far
    GENIUS Act Scorecard: What US Regulators Have Actually Delivered
    The Final 30 Days Will America Get Its GENIUS Act Stablecoin Rulebook
    The Final 30 Days: Will America Get Its GENIUS Act Stablecoin Rulebook?
  • Opinion
    OpinionShow More
    The Arthur Hayes Paradox Macro Prophet or Market Opportunist
    The Arthur Hayes Paradox: Macro Prophet or Market Opportunist?
    RBI Denies Gold Sale Amid Oil Crisis: Could It Speed Up India's Digital Rupee Push?
    RBI Denies Gold Sale Amid Oil Crisis: Could It Speed Up India’s Digital Rupee Push?
    The CLARITY Act War Starts Jamie Dimon Vs Armstrong
    The CLARITY Act War Starts: Jamie Dimon Vs Armstrong
    Is Crypto Dying, or Is Pump.fun Turning It Into an Attention Casino
    Is Crypto Dying, or Is Pump.fun Turning It Into an Attention Casino?
    CoinSwitch on TMKOC India Saw a ₹100 Crypto Pitch, But Not the Risks Behind It_
    CoinSwitch on TMKOC: India Saw a ₹100 Crypto Pitch, But Not the Risks Behind It
  • Learn
    • Explained
    • How To
    • Insights
  • Videos
  • More
    • About Us
    • Our Authors
    • Contact Us
    • Editorial Policy
The Crypto TimesThe Crypto Times
  • All News
  • Market
  • Bitcoin
  • Ethereum
  • Altcoins
  • Regulations & Policies
  • Blockchain
  • DeFi
  • Industry
  • Exclusive
  • Opinion
Search
  • News
    • Market
    • Bitcoin
    • Ethereum
    • Altcoins
    • Regulations & Policies
    • Blockchain
    • DeFi
    • Industry
    • Exclusive
    • Opinion
  • Learn
    • Explained
    • How To
    • Insights
  • Quick Links
    • About Us
    • Our Authors
    • Contact Us
    • Editorial Policy
    • AI Policy
    • Sponsored & Advertorial Policy
  • Podcasts
Follow US
© 2026 By Crypto Times. All Rights Reserved.
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 2026-03-20
Share
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.

Follow The Crypto Times on Google News to Stay Updated!      Google News
Google News Banner

TAGGED:CryptocurrencyStablecoin
Share This Article
Whatsapp Whatsapp LinkedIn Telegram Copy Link
Shubham Soni Crypto Content Editor
By Shubham Soni
Follow:
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.

Latest News

Weekly Wrap $122M Liquidated After FOMC Holds Rates, Morgan Stanley Enters ETH ETF Race
Weekly Wrap: $122M Liquidated After FOMC Holds Rates, Morgan Stanley Enters ETH ETF Race
Humanity Protocol Hackers Move Stolen Funds to KuCoin Wallets
Humanity Protocol Hackers Move Stolen Funds to KuCoin Wallets
Small Banks Feel Sidelined in Trump’s Pro-Crypto Agenda
Small Banks Feel Sidelined in Trump’s Pro-Crypto Agenda
Steam Workshop Attack Installs Crypto Miners on Gamers’ PCs: Kaspersky
Steam Workshop Attack Installs Crypto Miners on Gamers’ PCs: Kaspersky
Inside the High-Stakes Corporate War Over the GENIUS Act
Inside the High-Stakes Corporate War Over the GENIUS Act

Find Us on Socials

You may also like

Cardone Capital Stacks Another 282 BTC

Cardone Capital Stacks Another 282 BTC

Weaponizing Web3 Congress Pivots Crypto Policy Toward National Security

Weaponizing Web3: Congress Pivots Crypto Policy Toward National Security

From Demonetization to Digital Rupee India's Decade-Long Blockchain Journey

From Demonetization to Digital Rupee: India’s Decade-Long Blockchain Journey

WhiteBIT EU Secures MiCA License in Austria Ahead of EU’s Deadline

WhiteBIT EU Secures MiCA License in Austria Ahead of EU’s Deadline

The Crypto Times Logo PNG

Providing real-time, accurate Crypto reporting. Your trusted source for Crypto News and Research.

Stay Updated

All News
Exclusive
Opinions
Learn
Videos

Company

About Us
Our Authors
Editorial Policy
AI Policy
Advertorial Policy

Get In Touch

Contact Us
Career

Find Us on Socials

X-twitter Linkedin Telegram Youtube Instagram

© 2026 The Crypto Times | A BITROCK TECHNOLOGIES L.L.C. Company.

DMCA.com Protection Status
  • Terms and Conditions
  • Disclaimer
  • Privacy Policy
  • Cookie policy
Do Not Sell or Share My Personal Information