# US CFTC Clarifies Crypto Asset Collateral Pilot Requirements: BTC/ETH Must Meet 20% Capital Adequacy Ratio

According to market sources, the US Commodity Futures Trading Commission (CFTC) has provided detailed guidance on its pilot program for crypto assets as collateral. The regulatory agency has notified futures commission merchants (FCMs) participating in the pilot that they must submit notices to the market participants department, 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 are calculated at a 20% capital adequacy ratio, while stablecoins are at 2%. FCMs participating in the pilot program may only accept Bitcoin, Ethereum, or stablecoins during the first three months.

2. Compliance and Reporting Obligations: Participating FCMs must promptly report material cybersecurity or system issues and submit weekly reports on the total amount of crypto assets in customer accounts.

3. Expansion After Three Months: Other crypto assets may be used as collateral after three months, while certain reporting requirements terminate.

4. Limited Use Cases: Only designated stablecoins are permitted to be deposited into customer segregated accounts for remaining equity purposes. Crypto assets cannot be used as collateral for uncleared swaps, though qualified tokenized assets may serve as substitutes.

5. Derivatives Clearing Organization Requirements: Clearing organizations that meet CFTC credit, market, and liquidity risk requirements may accept crypto assets and stablecoins as initial margin for cleared transactions.