By 24 September: the market participants sector, the market regulator and the clearing house and risk department of the United States CFTC issuedUpdate of the frequently asked questions (FAQ) on the activities of registrants and registered entities in the area of crypto asset and blockchain technologyTo address the issue of customer funds investing in forms of denominated permitting investment and using blockchain technology to meet the record-keeping requirements of the registrant. According to CFTC Chairman Sélige, “is pleased that staff have updated these common issues, which is consistent with the Agency's ongoing efforts to provide regulatory clarity for the cryptocurrency industry. These frequently asked questions were first published on 20 March 2026 and included answers to common questions about the activities of registrants and entities related to crypto asset and blockchain technology, with a view to providing further clarification for market participants regarding CFTC staff letters 25-39Letters from CFTC staff 26-05(No action taken by staff members accepting digital assets as collateral for the bond).

Below is an update of FAQ:

CFTC Ministry of Market Participants, Department of Market Supervision and Department of Settlement and Risk Response to Common Issues received by Registerers and Registered Entities on Activities Related to Encrypted Assets and blockchain Technology

The United States' CFTC's Market Participants Department (“MPD”), the Market Supervisory Department (“DMO”) and the Department of Settlement and Risk (“DCR”, jointly with MPD and DMO, “the Departments”) have prepared responses to the following frequently asked questions on the activities of registrants and registered entities under the Merchandise Transactions Act (“CEA”) in relation to crypto asset and blockchain technology (“FAQ”).

In December 2025, departments issued CFTC staff letters 25-39 and MPD issued CFTC staff letters 25-40 (reissued as CFTC staff letters 26-05 with limited amendments), providing guidance and no objection to the use of certain crypto assets as collateral in derivatives markets. Following the issuance of the above-mentioned staff letter, departments received questions from some aspects of the letter seeking clarification. Accordingly, the ministries provide these responses to further clarify those staff letters and other relevant topics for market participants as required. On this basis, ministries may update or add new questions and answers. If updates are made, additional questions added after the previous version has been published will be marked as “updated” or “new”.

Bond collateral.

Q1: FCM Can customers deposit futures, foreign futures or liquidate swap accounts as securities-crypto assets (including the payment of stable currency) to secure debit/deficit account balances of clients?

Yes. FCM, which relies on CFTC staff correspondence 26-05, can use the value of uninsured crypto assets that are deposited into futures, foreign futures or liquidate swap accounts as a bond after applying discounts to secure debit or deficit account balances of customers. CFTC Staff Letter 26-05 provides that the MPD will not recommend to the Commission to initiate enforcement action if, in determining whether and to what extent a customer ' s futures, foreign futures or clearing swap accounts are under-guaranteed, certain crypto assets held as customer bonds (including the payment of stable currency)5 are considered after application of the discount. Pursuant to Commission regulation 1.17 (c) (5) (viii) (C)6 and CFTC staff letter 26-05, MPD clarified that security-free crypto assets could also be used to secure customer debit or deficit account balances.

For FCM, which relies on MPD ' s no-objection position, the valuation and discounts applicable to securityless crypto assets are detailed in CFTC staff letters 26-05.

Q2: FCM Can you deposit your own stabilization currency into the segregated customer account as a residual interest?

As described in the CFTC staff letter 26-05, MPD would not recommend to the Committee that enforcement action be initiated with respect to FCM, which deposits its own fixed currency as a residual interest in futures, foreign futures and customer segregation accounts for clearing swap transactions. FCM shall incur capital costs in the amount of a stable currency for payments to client-segregated accounts, as required by Commission Regulation 1.17(c)(5). 7 MPD will not object if FCM is not less than it pays 2 per cent of the market value of a stable currency.

MPD noted that the answer to this question was consistent with the approach taken by the United States Securities and Exchange Commission (“SEC”) in applying discounts to stable currency positions for brokers.

Q3: Could FCM deposit its own crypto assets other than the Stable Currency in a segregated customer account as a residual interest?

Not. FCM, which relies on the no-objection position in CFTC staff letter 26-05, may not deposit its own crypto assets (e.g. bitcoin, utco or other crypto assets, except for payment of stabilization currency) into a customer isolation account as a residual interest. According to the terms of CFTC staff letter 26-05, only the self-payment stability currency can be deposited in a client isolation account as a residual interest.

Q4: Could FCM invest its clients' funds in the payment of stable coins?

The CFTC staff letter 26-05 has no effect on the list of investments allowed for the funds of clients in Commission Regulation 1.25.9 FCM may deposit a stability currency into an segregated client account only if it represents the remaining interest of FCM in the account.

Q5: Can the exchange dealer exchange crypto assets as an initial or variable security deposit with the exchange dealer or financial end-user that has not been liquidated? (updated 24 September 2026)

Not possible. The CFTC staff letter 26-05 has no effect on the list of unliquidated swap security collateral listed in Commission regulation 23.156.Encrypted assets, including the payment of stabilization notes, are not included in the list of collateral for qualifying bonds.

According to the staff guidance provided in the CFTC staff letter 25-39,The exchange traders can swap the forms of denominated collateralized assets.Provided that the asset meets applicable regulatory requirements and confers on the holder the same or functionally equivalent rights attached to the traditional form of holding the asset.

Ministries would therefore not object, for example, to the use and acceptance of the share of the monetized money market fund as an initial or variable security for unliquidated swaps, provided that the base fund met the requirements of Commission regulation 23.156 (a) (l) (ix), that the monetized share conferred on the holder legal and economic rights equal to or functionally equivalent to those acquired by a holder holding that share in traditional form, and that all other regulatory requirements relating to unliquidated swap transactions had been met. The ministries noted that the Commission ' s recent amendment to Commission Regulation 23.156 (a) (ix)13 removed asset transfer restrictions, thereby broadening the scope of the share of money market funds and similar funds that could be accepted as collateral.

Q6: How much capital should FCM charge to its own non-securities crypto assets (including the payment of a stable currency) when calculating its regulatory capital?

Consistent with the usual problems of the SEC, MPD will not object if FCM is to apply 20 per cent of the minimum capital costs as provided for in Commission Regulation 1.17(c)(5)(ii) and 2 per cent of the capital costs for the payment of a stable currency.

In the spirit of inter-institutional coordination, ministries consider it important to align the treatment of discounts applicable to Bitcoin, to utco and to pay for a stable currency ' s own position with the discount framework reflected in the same self-employed positions held by securities brokers in common problems with the SEC.

Q7: Can DCO use crypto assets (including the payment of stabilization notes) as an initial bond for clearing transactions?

Yes. DCO may use crypto assets (including the payment of stability notes) as an initial bond for liquidation transactions, provided that the collateral meets the requirements of Commission regulation 39.13(g)(10) which requires DCO to limit its acceptance of initial security assets to those with very low credit, market and liquidity risk.

Q8: How much discount should DCO apply to crypto assets deposited as an initial bond for liquidation transactions (including the payment of stable currency)?

In accordance with Commission regulation 39.13 (g) (12), DCO is responsible for setting discounts on the initial bond assets it accepts. DCO must apply discounts to assets deposited as initial bonds (including crypto assets and payment of stabilization notes) in order to properly reduce value, reflect credit, market and liquidity risks and consider pressure market conditions. DCO must assess the appropriateness of discounts at least once a month.

Q9: Does the FCM require any action before relying on CFTC staff correspondence 26-05?

Requires. The CFTC staff letter 26-05 requires that, before relying on its no-objection position, the FCM must submit a notification to MPD, including the date on which it will begin accepting the user's crypto assets as collateral for the security. The notice must be submitted through the WinJammer electronic filing system.

Q10: What are the conditions for FCM to accept crypto assets as collateral for security according to CFTC staff letter 26-05?

FCM, which relies on CFTC staff correspondence 26-05, is subject to a number of conditions, three of which apply to the initial period of reliance on that letter. First, within three months from the date when FCM first accepts an crypto asset from its client, FCM can only accept the payment of a stability currency, bitcoin or crypto asset in the form of a twilight as collateral for the customer ' s guarantee and can only deposit a self-payment stability currency as a residual interest in futures, foreign futures and liquidating futures into the accounts of the client.

Second, during the initial three-month period, FCM must notify in a timely manner through the WinJammer electronic declaration system of any significant 19 operational or system problems, interruptions or failures, including any network security incident affecting the use of crypto assets as collateral for customer bonds.

Thirdly, within three months of the calendar date following the month in which the FCM is notified, the FCM must submit a report at the end of each working day on futures, foreign futures and the total number of crypto assets held in liquidation swap accounts through the WinJammer electronic declaration system.

Q11: What happens when the three-month period following the expiration of the no-objection position in the CFTC staff letter that FCM began to rely on?

After the expiration of the three-month period following the no-objection position in CFTC staff letter, limiting the acceptable security against crypto assets to the conditions for the payment of stabilization notes, bitcoin and utensils, as well as the conditions requiring notice of significant operational or system problems, interruptions or malfunctions, will cease to apply. Therefore, FCM may accept other crypto assets as collateral for the security provided that FCM meets the conditions applicable in CFTC staff letter 26-05 (1) to (3). The process outlined in CFTC staff letter 26-05 will continue to be followed to determine whether the customer account is under- or in a debit or deficit position and to what extent the value of the bond and the applicable discounts are applied.

The weekly reporting requirement for FCM begins with the calendar month following the month in which the FCM submitted the CFTC-dependent staff letter of intent 26-05 and ends at the end of the third calendar month (when the FCM no longer requires a weekly report).

Q12: Can FCM or DCO invest customer funds in other forms of monetization under Commission Regulation 1.25? (New September 24, 2026)

This may be provided that FCM or DCO can demonstrate the following matters, as required by Commission Regulation 1.25 and CFTC staff letter 25-39: (i) The underlying asset itself is a permitted investment under Commission Regulation 1.25(a); (ii) The legal and economic rights conferred on the holder by means of the monetization of the asset are identical or functionally equivalent to those acquired by the holder holding the asset in traditional form; (iii) Investments in monetized assets meet all applicable terms and conditions of the Commission regulation 1.25, including requirements related to liquidity, concentration limits, maturity periods and instrument characterization limitations; and (iv) Currencyized assets are held by an acceptable custodian.

Ministries also expect FCM or DCO to obtain written confirmations from the entity responsible for the hosting of the fund in accordance with Commission regulation 1.26 (b) for investments in the form of denominated funds for eligible government currency markets.

Record-keeping

Q13: Can recording entities use block chains (or distributed ledgers) to meet their record-keeping obligations under Commission Regulation 1.31? (New on 24 September 2026)

Yes. The Commission has made it clear that its regulation 1.31 is technically neutral. Thus, if the recording entity uses block chains (or distributed ledgers) to create and maintain records on the chain and to meet its record-keeping obligations under Commission Regulation 1.31, departments will not object if the recording entity fully meets the requirements of that provision. For example, Commission Regulation 1.31 provides that each recording entity maintaining electronic regulatory records (i.e., those not created and maintained solely in paper form, such as chain records) should establish appropriate systems and controls to ensure the authenticity and reliability of these electronic regulatory records.

Departments note that this principle is generally applicable to any committee regulation that provides for substantive record-keeping requirements and incorporates them by reference to the Commission ' s Regulation 1.31. The recording entity should also consider its risk management framework and any potential impact on its existing policies and procedures, in order to ensure that the records-keeping system upon which it relies complies with the applicable record-keeping requirements incorporated into the Commission ' s Regulation 1.31.

Q14: Is it possible for SEF, DCM, DCO, swap dealers, major swap players and non-exchange traders/principal swap participants/DCO trading opponents to use blockchain (or distributed ledger) technology to meet the record-keeping requirements under Commission regulation 45.2? (New on 24 September 2026)

Similar to Commission Regulation 1.31, Commission Regulation 45.2 is technically neutral.

Therefore, ministries will not object if SEF, DCM, DCO, swap dealers, major swap players or non-interchange traders/main swap players/DCO counterparties use block chains (or distributed books) to create and maintain records on the chain and meet their record-keeping requirements relating to data exchange under Commission Regulation 45.2 as long as they fully meet the requirements set out therein.

Consistent with the above-mentioned views expressed by the ministries on the Commission Regulation 1.31, the Ministries noted that this principle is generally applicable to any regulation of the Commission which provides for substantive record-keeping requirements and is incorporated into the Commission Regulation 45.2. Therefore, entities in such situations should equally consider their risk management framework and any potential impact on their existing policies and procedures to ensure that the record-keeping systems on which they rely comply with applicable record-keeping requirements incorporated into Commission regulation 45.2.

Q15: Are the record-keeping entities under Commission regulation 1.31 that use blockchain (or distributed ledger) technology, or SEF, DCM, DCO, swap dealers, major swap participants and non-exchange traders/principal swap players/DCO counterparties required to maintain a lower-chain version of the record? (Added 24 September 2026)

Departments would not object simply because the above entities chose not to maintain the under-chain version of records.

However, the ministries indicated that if an entity uses a public and non-licensed blockchain network (as opposed to a privately owned and/or licensed blockchain network) for record-keeping, it should establish systems and controls to enable it to maintain and present such records in all circumstances, including in case of emergency or other disruptions in the network (or its associated block browser). For example, entities should consider implementing systems and controls to enable them to produce relevant records and make them available for inspection by the Committee without access to a public blockchain network (or its associated block browser), whether due to network disruption or otherwise.