CFTC Sets Ground Rules for Using Crypto as Collateral in Derivatives Pilot

US derivatives markets regulator, the CFTC (Commodity Futures Trading Commission), has clarified how crypto can be used as collateral in trading, in follow-up guidance to its landmark digital asset pilot program launched late last year.

The CFTC notice issued on March 20 provides answers to frequently asked questions about how the industry can start integrating digital assets into regulated US derivatives markets. That includes specifying the capital charge — or ‘haircut’ — applied (how much an asset’s market value is trimmed/held in reserve to cover losses when it’s used as collateral).

The FAQ outlines that firms taking derivatives orders should take capital charges “consistent with the SEC FAQs”, which would mean applying a minimum 20% capital charge for positions in Bitcoin and Ether, and a 2% capital charge for stablecoins. 

Other rules for pilot participants include that crypto and stablecoins can’t be exchanged as initial margin for uncleared swaps, but crypto and stablecoins can be accepted as initial margin for cleared swaps. Firms also cannot invest customer funds in payment stablecoins, or deposit their own crypto assets in segregated customer accounts as residual interest.  

The notice also clarifies that:

• Firms taking part in the pilot can only accept crypto assets in the form of stablecoins, bitcoin or ether as margin collateral from customers for the first three months, and “may deposit only proprietary payment stablecoins as residual interest in futures, foreign futures, and cleared swaps customer accounts.”
• Firms will be subject to strong oversight within the first three months, including a requirement to report weekly on crypto assets held, and “provide prompt written notice” to the regulator if they experience any operational or system issue, disruption, failure or cybersecurity incident that affects the use of crypto as collateral.
• After the three-month period, other crypto assets can be taken as collateral and reporting requirements will cease.

Related: US Senate Eyes April Vote on Landmark Crypto Market Structure Bill

SEC/CTFC Crypto Rules Lining Up

Paving the way for advances in tokenised collateral was the implementation of the GENIUS Act, which passed into law in July 2025, as well as the President’s Working Group on Digital Asset Markets report.

The CTFC pilot program to allow assets including BTC, ETH and USDC to be used as collateral in regulated derivatives markets was first launched in December 2025. A tokenised collateral initiative was also launched by the agency in September 2025, and the then-Chair Caroline D. Pham also gave the green light for US exchanges to offerleveraged spot crypto trading.

Related: SEC Says Most Cryptocurrencies Aren’t Securities in Major Regulatory Shift

The additional guidance on the pilot program was released within days of a joint interpretative guidance issued on March 17 by the CTFC and the Securities and Exchange Commission (SEC) that finally answered the industry’s questions over which assets are considered ‘securities’ or not.

The post CFTC Sets Ground Rules for Using Crypto as Collateral in Derivatives Pilot appeared first on Crypto News Australia.