Cryptocurrency & Blockchain
CFTC staff prescribes haircuts, reporting and limits for crypto used as derivatives collateral
CFTC staff published an operational FAQ that prescribes specific capital haircuts (20% for proprietary bitcoin/ether, 2% for approved payment stablecoins), mandates a three‑month constrained rollout for firms using the staff no‑action path, and requires weekly position reporting plus monthly DCO stress reviews. The guidance deliberately aligns stablecoin haircut math with recent SEC staff guidance, but it sits alongside Fed and other agency work that could push uncleared bilateral margin higher — together these signals are likely to shift collateral and leveraged derivatives activity toward cleared, custody‑centric plumbing.
