The US CFTC has clarified the pilot requirements for using crypto assets as collateral: BTC/ETH collateral requires a 20% capital adequacy ratio, while stablecoins require 2%.

The U.S. Commodity Futures Trading Commission (CFTC) has provided detailed guidance on a pilot program allowing crypto assets as collateral. The regulator has reiterated that participating Futures Brokers (FCMs) must submit a notification to the Market Participants Division specifying the start date for accepting crypto assets as margin. Key points include: 1. Capital Requirements: Only Bitcoin, Ethereum, and stablecoins are accepted as collateral. BTC/ETH is calculated at a 20% capital adequacy ratio, and stablecoins at 2%. Participating FCMs can only accept Bitcoin, Ethereum, or stablecoins for the first three months. 2. Compliance and Reporting Obligations: Participating FCMs must promptly report significant cybersecurity or system issues and submit weekly reports on the total amount of crypto assets in client accounts. 3. Extension After Three Months: Other crypto assets can be used as collateral after three months, while some reporting requirements will be terminated. 4. Restricted Use: Only dedicated payment stablecoins are allowed to be deposited into the remaining equity of client segregated accounts. Crypto assets cannot be used as collateral for open swaps, but eligible tokenized assets can be substituted. 5. Requirements for Derivatives Clearing Firms: Clearing firms that meet the CFTC's credit, market, and liquidity risk requirements may accept crypto assets and stablecoins as initial margin for cleared trades. (Cointelegraph)