AI subject tested: Claude Sonnet 4.6 (web search on)
Question (paraphrased): A futures commission merchant needs to distinguish two '20 percent' requirements in the CFTC's December 2025 digital asset framework — one applied to customer-posted collateral and one to the firm's proprietary holdings. For the customer margin haircut requirement, what specific rule governs the haircut calculation when multiple registered clearing organizations each accept the same digital asset but at different haircut rates?
AI response:
"For digital assets not accepted by any registered DCO as initial margin, the FCM must apply a minimum 20% haircut to the current market value of that customer-deposited collateral"
Regulator verbatim text:
"Where multiple DCOs accept the same asset at different haircuts, the FCM must apply the HIGHEST such haircut."
Failure mode: misstated_rule
Substrate document: p_02_GUIDELINE_CFTC_Staff_Letter_25_40___26_05___two_di_download.pdf
This finding documents a confirmed hallucination by Claude Sonnet 4.6 (web search on) on a probe of the regulation. The model's response was tested against the regulator's verbatim primary text and classified as misstated_rule. Full per-finding context is available via the linked Citation ID.
Each finding has a stable Citation ID (RLB-F-… for aggregated case-study findings, RLB-H-… for raw per-model hallucinations) — like a DOI, the ID always resolves to the canonical finding even if URLs change.
RegLeg Specialist Panel (2026). "A futures commission merchant needs to distinguish two '20 percent' requirements in the CFTC's December 2025 digital ass — AI Labs." Citation ID: RLB-H-US-CFTC-DIGITAL-ASSET-COLLATERAL-TOKENIZED-ASSETS-STAFF-GUIDANCE-2025-Q007-Sonnet46. RegLegBrief AI Hallucination Research, published 2026-06-07. https://reglegbrief.com/regulators/j3/us/CFTC/DIGITAL-ASSET-COLLATERAL-TOKENIZED-ASSETS-STAFF-GUIDANCE-2025/whitepaper/finding/US-CFTC-US-001-DIGITAL-ASSET-COLLATERAL-TOKENIZED-ASSETS-STAFF-GUIDANCE-2025-v1-007--sonnet-46-websearch/
RegLeg Specialist Panel. (2026). A futures commission merchant needs to distinguish two '20 percent' requirements in the CFTC's December 2025 digital ass [Hallucination finding RLB-H-US-CFTC-DIGITAL-ASSET-COLLATERAL-TOKENIZED-ASSETS-STAFF-GUIDANCE-2025-Q007-Sonnet46]. RegLegBrief AI Hallucination Research. https://reglegbrief.com/regulators/j3/us/CFTC/DIGITAL-ASSET-COLLATERAL-TOKENIZED-ASSETS-STAFF-GUIDANCE-2025/whitepaper/finding/US-CFTC-US-001-DIGITAL-ASSET-COLLATERAL-TOKENIZED-ASSETS-STAFF-GUIDANCE-2025-v1-007--sonnet-46-websearch/
RegLeg Specialist Panel, A futures commission merchant needs to distinguish two '20 percent' requirements in the CFTC's December 2025 digital ass [RLB-H-US-CFTC-DIGITAL-ASSET-COLLATERAL-TOKENIZED-ASSETS-STAFF-GUIDANCE-2025-Q007-Sonnet46], RegLegBrief AI Hallucination Research (June 07, 2026), https://reglegbrief.com/regulators/j3/us/CFTC/DIGITAL-ASSET-COLLATERAL-TOKENIZED-ASSETS-STAFF-GUIDANCE-2025/whitepaper/finding/US-CFTC-US-001-DIGITAL-ASSET-COLLATERAL-TOKENIZED-ASSETS-STAFF-GUIDANCE-2025-v1-007--sonnet-46-websearch/.
@misc{reglegbrief_RLB_H_US_CFTC_DIGITAL_ASSET_COLLATERAL_TOKENIZED_ASSETS_STAFF_GUIDANCE_2025_Q007_Sonnet46,
author = {RegLeg Specialist Panel},
title = {A futures commission merchant needs to distinguish two '20 percent' requirements in the CFTC's December 2025 digital ass},
year = {2026},
publisher = {RegLegBrief AI Hallucination Research},
note = {Hallucination finding Citation ID: RLB-H-US-CFTC-DIGITAL-ASSET-COLLATERAL-TOKENIZED-ASSETS-STAFF-GUIDANCE-2025-Q007-Sonnet46},
url = {https://reglegbrief.com/regulators/j3/us/CFTC/DIGITAL-ASSET-COLLATERAL-TOKENIZED-ASSETS-STAFF-GUIDANCE-2025/whitepaper/finding/US-CFTC-US-001-DIGITAL-ASSET-COLLATERAL-TOKENIZED-ASSETS-STAFF-GUIDANCE-2025-v1-007--sonnet-46-websearch/}
}
Every finding on this page compares an AI subject's account of the rule against the regulator's verbatim text from the regulator's own portal. Both are linked. Each delta, its root causes, and impact analysis are documented and published with immutable Citation IDs.