Crypto Can Serve as Derivatives Collateral. What Happens when Its Price Falls?

Crypto can serve as derivatives collateral. What happens when its price falls?

The CFTC has updated its guidance on tokenized customer-fund investments and blockchain records, putting the focus back on the rules that already let some futures intermediaries take crypto as margin. A fall in the token’s price sets off several different…

CFTC Updates Crypto Guidance to Allow Tokenized Customer Funds and Blockchain Recordkeeping

The Commodity Futures Trading Commission has updated its digital-asset guidance to clarify that regulated derivatives firms can invest customer funds in tokenized versions of permitted assets and use blockchain technology to satisfy regulatory recordkeeping requirements. The CFTC’s Market Participants Division, Division of Market Oversight and Division of Clearing and Risk published the updated guidance on September 24, expanding a set of crypto…

CFTC Says Eligible Tokenized Assets May Support Customer Funds

The updated FAQ covers Regulation 1.25 investments, uncleared swaps margin and blockchain-based regulatory records.

CFTC updates FAQs on crypto assets and blockchain technologies

The CFTC's updated guidance could streamline crypto integration into financial systems, aligning with SEC standards and impacting market structures.