U.S. CFTC expands eligible collateral for derivatives…recognizes stablecoins issued by national trust banks

The U.S. Commodity Futures Trading Commission (CFTC) has revised its digital-asset (crypto) collateral regime, expanding the scope so that stablecoins issued by national trust banks can also be used as margin for derivatives.

According to crypto-focused outlet BeInCrypto on the 7th, the CFTC specified in Staff Letter 25-40 dated the 6th that futures commission merchants (FCMs) may accept stablecoins issued by national trust banks as margin. This corrects an issue in guidance presented last December that effectively excluded federally chartered national trust banks by permitting only stablecoins issued by state-regulated money transmitters or trust companies.

The earlier guidance had drawn criticism for unintentionally creating a two-tier structure depending on the type of stablecoin issuer. With stablecoins issued by federally chartered banks excluded from the list of eligible collateral assets, participation opportunities in the tokenized derivatives collateral market were assessed as being constrained. Under the revision, stablecoins issued by national trust banks are now afforded the same status as those issued by state-regulated entities.

CFTC Chairman Mike Selig emphasized the significance of the move. In a statement, he said that “through the implementation of the GENIUS Act and the CFTC’s new eligible collateral framework, the United States has become a global leader in stablecoin innovation.”

The adjustment is also seen as easing the operational burden for the clearing and settlement industry. Under existing financial infrastructure, institutional constraints have been substantial in the process of integrating digital assets into payment rails. Salman Baney, legal counsel at Plume Network, said “this action enables stablecoins that meet the GENIUS Act to be used as the payment leg for institutional derivatives settlement.”

The CFTC, however, made clear that the move is a time-limited test rather than deregulation. The commission said it would, for the time being, recommend against enforcement action for FCMs that accept qualifying assets as collateral, but only where enhanced reporting obligations are faithfully met. Items subject to immediate reporting include digital-asset holdings, operational disruptions, and cybersecurity incidents.

The decision extends a digital-asset collateral pilot program launched last year. FCMs participating in the program may use Bitcoin, Ethereum, and qualifying stablecoins as derivatives collateral. The CFTC characterized the process as a regulatory sandbox, adding that operational resilience and risk-management performance observed during the trial period will determine whether the framework is made permanent.