CFTC staff permits conditional use of specified digital assets as FCM margin collateral

What changed

CFTC staff provided a conditional no-action position for FCMs accepting specified payment stablecoins and other non-security digital assets as margin collateral and recognizing their value for identified capital and segregation calculations. The reissued letter expands the payment-stablecoin issuer definition to include a qualifying national trust bank.

Who it affects

• FCMs, derivatives customers, clearing members, CTAs, and CPOs
• Advisers using crypto collateral for futures and options accounts

What is still open

• FCM adoption, eligible-asset lists, haircuts, custody, segregation, and liquidation practices
• Durability of staff relief and interaction with future Commission rules

What it means for an advisor

• Diligence FCM eligibility criteria, concentration limits, haircuts, custody, segregation, liquidation, and stablecoin redemption
• Explain that collateral acceptance does not establish investment suitability or eliminate volatility and operational risk

Previous interpretation

The earlier Letter 25-40 did not expressly include a national trust bank within the specified payment-stablecoin issuer definition.