How Does the Treatment of a Crypto Asset as a Security versus a Commodity Affect Cross-Margining? ▴ Learn

How Does the Treatment of a Crypto Asset as a Security versus a Commodity Affect Cross-Margining?

The classification dictates the regulatory body (SEC vs. CFTC) and the specific rules governing the asset.

If a crypto asset is a security, it falls under stricter SEC rules regarding custody and margin, making cross-margining with CFTC-regulated commodity derivatives complex. Different regulatory frameworks and legal standards create a significant barrier to seamless cross-margining.

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