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In the US, cryptocurrency has been allowed as collateral in derivatives trading
Acting CFTC Chair Caroline Pham (Caroline Pham) explained the permission with provisions from the Genius stablecoin regulation law.
For the first three months, the list of crypto assets allowed as collateral for loans will be limited to three virtual coins. Organizations trading derivatives will be required to report weekly to the regulator on the volume of digital assets in their clients' accounts and report any arising issues.
The agency also released guidance on the use of tokenized assets, including tokenized treasury securities, as collateral for derivatives trading.
Derivatives are financial instruments whose value is determined by an underlying asset.
Previously, the New Hampshire Business Finance Authority (BFA) approved the issuance of bonds in bitcoin amounting to $100 million. The commission fees from bond transactions are promised to be directed toward funding pro-cryptocurrency initiatives.