CFTC guidance allows Bitcoin, Ethereum and payment stablecoins as margin collateral

The U.S. CFTC has issued guidance detailing when futures commission merchants and clearinghouses may accept Bitcoin, Ethereum, and payment stablecoins as margin collateral in derivatives accounts. The framework permits use in futures, foreign futures, and cleared swaps (and allows clearinghouses to take crypto for initial margin), but keeps a ban on using crypto margin for uncleared swaps. Firms must notify the CFTC, follow enhanced reporting for the first 3 months, and apply haircuts such as a typical ~2% capital charge for payment stablecoins.