The CFTC has published a FAQ about the use of crypto assets as collateral, clarifying aspects of its digital asset margin collateral framework it published at the end of last year.

In its December guidance, the regulator said that FCMs can apply the value of non-security crypto assets including payment stablecoins, deposited by clients as margin to secure debit or deficit account balances, as long as a haircut is applied. 

The clarifications specify that FCMs applying a 2% haircut to payment stablecoin positions will not elicit a negative reaction from the regulator,…