U.S. CFTC releases virtual asset FAQ to clarify regulation

Uk Jin

Summary

The U.S. Commodity Futures Trading Commission (CFTC) said it has provided additional guidance on market participant activities related to virtual assets (cryptocurrencies) and blockchain technology.
The CFTC said it released an FAQ on registrants’ and institutions’ virtual asset and blockchain activities, explaining guidance on tokenized collateral and no-action relief regarding the use of digital assets as margin collateral.
The FAQ includes topics such as the use of virtual assets as margin collateral, custody of stablecoins in customer accounts and the application of capital requirements, clearinghouses’ standards for accepting virtual asset collateral, and risk-management requirements.

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The U.S. Commodity Futures Trading Commission (CFTC) has provided additional guidance on market participant activities related to virtual assets (cryptocurrencies) and blockchain technology.

On the 20th (KST), the CFTC’s Market Participants Division and Clearing and Risk Division said they released a “Frequently Asked Questions (FAQ)” document on virtual asset- and blockchain-related activities of registrants and institutions. The FAQ was prepared to more precisely explain matters related to guidance on tokenized collateral and no-action relief regarding the use of digital assets as margin collateral.

The FAQ includes questions on: ▲how virtual assets can be used as margin collateral ▲custody of stablecoins in customer accounts and the application of capital requirements ▲whether virtual assets are eligible as initial margin ▲standards for clearinghouses’ acceptance of virtual asset collateral ▲related reporting and risk-management requirements.