The U.S. Commodity Futures Trading Commission (CFTC) has provided more details on its pilot program that allows cryptocurrencies to be used as collateral in derivatives markets. The new guidance was issued in response to frequently asked questions about the program that began last year.
Summary
- CFTC allows crypto as collateral in derivatives, following a pilot program.
- FCMs must apply a 20% capital charge for Bitcoin and Ether positions.
- Crypto cannot be used for uncleared swaps, but is allowed for cleared transactions.
The CFTC’s recent notice outlines the procedures for futures commission merchants (FCMs) wishing to participate in the pilot program. FCMs are…
