CFTC’s Crypto Move: National Trust Banks Get Their Moment

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The US Commodity Futures Trading Commission (CFTC) expanded its digital asset collateral framework on February 6.

This update explicitly authorizes futures commission merchants (FCMs) to accept stablecoins issued by national trust banks as margin. Because nothing says “financial inclusivity” like a government agency finally realizing they accidentally excluded a whole class of institutions.

Bank-Issued Stablecoins Enter US Derivatives Margin

The revision, detailed in Staff Letter 25-40, serves as a critical course correction to guidance issued in December. Because who doesn’t love a good “oops, we forgot about you” moment?

That earlier framework had inadvertently created a two-tiered system by restricting eligible payment stablecoins to those issued by state-regulated money transmitters or trust companies. Ah, the old “two-tiered system”-because nothing says “we’re all in this together” like excluding half the players.

The oversight effectively sidelined federally chartered national trust banks from participating in the burgeoning market for tokenized derivatives collateral. Imagine being the forgotten cousin at the family reunion, only to realize the party’s been going on without you for months.

Consequently, their previous exclusion from the eligible collateral list was an unintentional error that required immediate rectification. Because nothing says “we’re competent” like fixing a mistake by admitting you’re a bit of a mess.

In light of this, this update confirms that stablecoins issued by national trust banks now have parity with assets from state-regulated issuers, such as Circle and Paxos. Now, if only they’d all get along at the family picnic.

.@CFTC Staff Reissues Letter 25-40 Updating Payment Stablecoin Definition:

– CFTC (@CFTC) February 6, 2026

CFTC Chairman Mike Selig characterized the revision as a strategic step toward cementing American dominance in the digital asset sector. Because nothing says “global leadership” like a government agency finally catching up to the 21st century.

“With the enactment of the GENIUS Act and the CFTC’s new eligible collateral framework, America is the global leader in stablecoin innovation,” Selig said in a statement Friday.

The update is critical for the clearing industry, which has struggled to integrate digital assets into traditional settlement workflows. Because nothing says “progress” like a system that’s been stuck in the 90s since the dot-com bubble.

Salman Banei, general counsel of Plume Network, noted the operational significance of the fix, saying:

“With this, GENIUS Act compliant stablecoins can be used as the payment leg for institutional derivatives settlement.”

The commission stated that it would not recommend enforcement action against FCMs that accept newly qualified assets. However, this leniency is conditional on their adherence to the enhanced reporting protocols outlined in the no-action letter. Because nothing says “trust us” like a mountain of paperwork.

Meanwhile, this latest move is part of a broader pilot program launched by the commission last year. A temporary permit to play with digital assets, but only if they behave and report every move.

Under this initiative, FCMs are temporarily permitted to utilize Bitcoin, Ethereum, and qualified stablecoins as collateral for derivatives trading. Because nothing says “innovation” like a regulatory sandbox where everyone’s on a leash.

However, the CFTC emphasized that this relief comes with stringent oversight. Participating FCMs must file frequent reports detailing their digital asset holdings and must immediately disclose any significant operational failures, disruptions, or cybersecurity incidents. Because nothing says “safety” like a system that treats its participants like toddlers.

This reporting mechanism effectively places the industry in a regulatory sandbox, where the operational resilience demonstrated during this trial period will determine the long-term viability of crypto-collateral. Because nothing says “trust us” like a trial period that’s basically a high-stakes game of “will this fall apart?”

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2026-02-07 15:15