CFTC FAQ on Crypto and Blockchain Technologies

March 21, 2026

On March 20, 2026, the Commodity Futures Trading Commission’s Market Participants Division (MPD) and Division of Clearing and Risk published responses to frequently asked questions regarding registrant and registered entity activities involving crypto assets and blockchain technologies. These responses provide additional clarity on topics addressed in CFTC Staff Letters 25-39 (Tokenized Collateral Guidance) and 26-05 (Staff No-Action Position Regarding Digital Assets Accepted as Margin Collateral).

The CFTC’s FAQ covers several important areas concerning the use of crypto assets and payment stablecoins by market participants in derivatives markets. It discusses whether futures commission merchants (FCMs) can use customer crypto assets, including stablecoins, to secure debit or deficit account balances. It also addresses rules for FCMs depositing their own stablecoins as residual interest in customer accounts, and clarifies restrictions on using other crypto assets like bitcoin or ether for this purpose and on investing customer funds in stablecoins.

The FAQ also examines capital charges FCMs must apply to their proprietary crypto holdings, as well as whether swap dealers may accept crypto assets as margin for uncleared swaps. For derivatives clearing organizations (DCO), it covers the conditions for accepting crypto assets as initial margin and the required haircuts to manage risks. Finally, the FAQ outlines various notification and reporting requirements.

The FAQ is reproduced in its entirety below. It can also be found here.

CFTC FAQ on Crypto and Blockchain Technologies

May an FCM apply a customer’s non-security crypto assets, including payment stablecoins, deposited as margin in futures, foreign futures, or cleared swaps accounts to secure the customer’s debit/deficit account balance?

Yes, an FCM relying on CFTC Staff Letter 26-05 may apply the value of a customer’s non-security crypto assets, after applicable haircuts, deposited to margin futures, foreign futures, or cleared swaps accounts to secure the customer’s debit or deficit account balance. CFTC Staff Letter 26-05 states that MPD would not recommend that the Commission initiate an enforcement action if an FCM takes into account the value, after application of haircuts, of certain crypto assets, including payment stablecoins, held as customer margin when determining whether and to what extent a customer’s futures, foreign futures, or cleared swaps account was undermargined. Consistent with Commission Regulation 1.17(c)(5)(viii)(C)4 and CFTC Staff Letter 26-05, MPD clarifies that non-security crypto assets may also secure customer debit or deficit account balances.

For FCMs relying on MPD’s no-action position, the valuation and haircuts that are to be applied to the non-security crypto assets are detailed in CFTC Staff Letter 26-05.

May an FCM deposit its own payment stablecoins into segregated customer accounts as residual interest?

As stated in CFTC Staff Letter 26-05, MPD would not recommend that the Commission initiate an 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. The FCM shall impose a capital charge on the payment stablecoins deposited into customer segregated accounts as required under Commission Regulation 1.17(c)(5). MPD would not object if the FCM imposed a capital charge of at least 2% of the market value of their payment stablecoins.

MPD notes that the response to this question is consistent with the U.S. Securities and Exchange Commission’s (“SEC”) approach to the haircut applicable to a broker-dealer’s proprietary positions in payment stablecoins.

May an FCM deposit its own crypto assets, other than payment stablecoins, in segregated customer accounts as residual interest?

No. An FCM relying on the no-action position in CFTC Staff Letter 26-05 may not deposit proprietary crypto assets (e.g., bitcoin, ether, or other crypto assets), other than payment stablecoins, in customer segregated accounts as residual interest.

Under the terms of CFTC Staff Letter 26-05, only proprietary payment stablecoins may be deposited as residual interest in customer segregated accounts.

May an FCM invest customer funds in payment stablecoins?

No. CFTC Staff Letter 26-05 has no effect on 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.

May a DCO accept crypto assets, including payment stablecoins, as initial margin for cleared transactions?

Yes, a DCO may accept crypto assets, including payment stablecoins, as initial margin for cleared transactions provided that such margin collateral meets the requirements of Commission Regulation 39.13(g)(10), which provides that a DCO must limit the assets it accepts as initial margin to those that have minimal credit, market, and liquidity risks.

What haircut should a DCO apply to a crypto asset, including payment stablecoins, deposited as initial margin for cleared transactions?

Pursuant to Commission Regulation 39.13(g)(12), a DCO is responsible for setting haircuts on assets it accepts as initial margin. A DCO is required to apply haircuts to assets deposited as initial margin, including crypto assets and payment stablecoins, that provide appropriate reductions in value to reflect credit, market, and liquidity risks, taking into consideration stressed market conditions. A DCO is required to evaluate the appropriateness of the haircuts on at least a monthly basis.

Is an FCM required to take any action prior to relying on CFTC Staff Letter 26-05?

Yes. CFTC Staff Letter 26-05 states that prior to relying on the no-action position therein, the FCM must file a notice with MPD, which includes the date on which it will commence accepting crypto assets from customers as margin collateral. This notice must be filed via the WinJammer electronic filing system.

What conditions are imposed on FCMs that accept crypto assets as margin collateral under CFTC Staff Letter 26-05?

FCMs that rely on CFTC Staff Letter 26-05 are subject to several conditions, including three that apply during the initial period of reliance on the letter. First, for a period of three months commencing on the date the FCM first accepts crypto assets from customers, the FCM may accept only crypto assets in the form of payment stablecoins, bitcoin, or ether as margin collateral from customers and may deposit only proprietary payment stablecoins as residual interest in futures, foreign futures, and cleared swaps customer accounts.

Second, during the initial three-month period the FCM must provide prompt written notice, via the WinJammer electronic filing system, of any significant operation or system issue, disruption, or failure, including any cybersecurity incident, that affects the use of crypto assets as customer margin collateral.

Third, for three months starting with the calendar month following the month in which the FCM files its notice, the FCM files, via the WinJammer electronic filing system, as of the close of business each week a report of the total amount of crypto assets held in each of the futures, foreign futures, and cleared swaps accounts. The report shall list each crypto asset type separately, including payment stablecoins, for each of the three customer account classes.

What happens after expiration of the three-month period from the commencement of the FCM’s reliance on the no-action position in CFTC Staff Letter 26-05?

After expiration of the three-month period from the commencement of the FCM’s reliance on the no-action position in CFTC Staff Letter 26-05, the conditions limiting acceptable crypto asset margin collateral to payment stablecoin, bitcoin, and ether, as well as the condition requiring the filing of a notice of significant operation or system issue, disruption, or failure, will no longer apply. Therefore, an FCM may accept other crypto assets as margin collateral provided the FCM meets conditions (1) through (3) of CFTC Staff Letter 26-05 as applicable. The margin value and applicable haircuts for purposes of determining whether and to what extent a customer’s account is undermargined or in debit or deficit would continue to follow the process outlined in CFTC Staff Letter 26-05.

The FCM’s weekly reporting requirements begin with the calendar month following the month in which the FCM files its notice of intent to rely on CFTC Staff Letter 26-05, and they would terminate at the end of the third calendar month (at which point the FCM is no longer required to file a weekly report).

The article “CFTC FAQ on Crypto and Blockchain Technologies” first appeared on G. Dowd Law on March 21, 2026.

George Dowd

Founding Attorney

George Dowd is an attorney and also provides subject matter expert consulting services related to the foreign exchange, futures, cryptocurrency, and metals markets. He holds a B.A. in Economics from the College of the Holy Cross, a J.D. from the DePaul University College of Law, and is admitted to practice law in Illinois.

George has testified as an expert in proceedings before the National Futures Association, FINRA, the London Court of International Arbitration (LCIA), and the Federal Court of Australia. He served on the Board of Directors of the Global Digital Asset & Cryptocurrency Association in 2020 and 2021.

George has given presentations, or lectured, at the People’s Bank of China (Shanghai), the DePaul University Graduate School of Business, the National Futures Association, and the Chicago Bar Association’s Futures and Derivatives Committee, and has appeared frequently on CNBC, Bloomberg TV, and the Fox Business Network.

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