CFTC Responds to FAQs on Crypto, Blockchain Activities

On Friday, March 20, 2026, the Commodity Futures Trading Commission (CFTC)’s Market Participants Division (MPD) and Division of Clearing and Risk responded to frequently asked questions regarding registrant and registered entity activities concerning crypto assets and blockchain technologies.

These FAQs follow the issuance of CFTC Staff Letter 25-39 and CFTC Staff Letter 25-40 in December 2025, with the latter being reissued as CFTC Staff Letter 26-05. These letters provided guidance and a no-action position on using specific crypto assets as collateral in derivatives markets. The Divisions are providing answers to clarify certain aspects of the letters in response to questions received after the staff letters were published.

The Divisions may update these FAQs periodically, with new additions marked as “UPDATED” or “NEW”.

Key Points Addressed in the FAQs:

• Use of Customer’s Non-Security Crypto Assets: An FCM relying on CFTC Staff Letter 26-05 can apply the value of a customer’s non-security crypto assets, after haircuts, deposited in futures, foreign futures, or cleared swaps accounts, to secure the customer’s debit/deficit account balance. CFTC Staff Letter 26-05 states that the MPD would not recommend enforcement action if an FCM considers the value of certain crypto assets, including payment stablecoins, when determining if a customer’s account is undermargined.
• Deposit of Payment Stablecoins: According to CFTC Staff Letter 26-05, the MPD will not recommend that the Commission initiate enforcement action against an FCM that deposits proprietary payment stablecoins as residual interest in customer segregated accounts for futures, foreign futures, and cleared swaps transactions.
• Deposit of Other Crypto Assets: An FCM relying on the no-action position in CFTC Staff Letter 26-05 may not deposit proprietary crypto assets (e.g., bitcoin, ether) other than payment stablecoins, in customer segregated accounts as residual interest.
• Investment of Customer Funds: CFTC Staff Letter 26-05 does not affect the list of permitted investments of customer funds in Commission Regulation 1.25. An FCM may only deposit payment stablecoins in segregated customer accounts if the payment stablecoins represent the FCM’s residual interest in the accounts.
• Capital Charge on Crypto Assets: Consistent with SEC FAQs, the MPD would not object if an FCM applies a minimum 20% capital charge specified in Commission Regulation 1.17(c)(5)(ii) for inventory positions in bitcoin and ether and a 2% capital charge for payment stablecoins.
• DCOs and Crypto Assets: A DCO may accept crypto assets, including payment stablecoins, as initial margin for cleared transactions if the margin collateral meets the requirements of Commission Regulation 39.13(g)(10), which states that a DCO must limit accepted assets as initial margin to those with minimal credit, market, and liquidity risks.
• Actions Required by FCMs: Prior to relying on CFTC Staff Letter 26-05, an FCM must file a notice with the MPD, including the date it will start accepting crypto assets from customers as margin collateral, via the WinJammer electronic filing system.
• Conditions Imposed on FCMs: FCMs relying on CFTC Staff Letter 26-05 are subject to conditions during the initial reliance period. For three months, the FCM may only accept payment stablecoins, bitcoin, or ether as margin collateral and may deposit only proprietary payment stablecoins as residual interest. The FCM must also provide prompt written notice of any significant operation or system issues affecting the use of crypto assets as customer margin collateral.
• Post Three-Month Period: After the three-month period, the limitations on acceptable crypto asset margin collateral and the notice requirement for operational issues no longer apply. An FCM may accept other crypto assets as margin collateral if it meets conditions (1) through (3) of CFTC Staff Letter 26-05.