CFTC Expands Futures Margin Rules to Include Stablecoins Issued by National Trust Banks
- CFTC expands stablecoin eligibility to national trust banks under GENIUS Act rules strengthening futures collateral access.
- Trust bank issued stablecoins now qualify as margin alongside Bitcoin and Ethereum in regulated US futures markets.
- Updated CFTC guidance removes issuer imbalance and supports institutional use of compliant dollar stablecoins.
The Commodity Futures Trading Commission revised its guidance about digital assets to match the federal stablecoin law. The agency revised Staff Letter 25-40 to reflect requirements under the GENIUS Act.
As a result, national trust banks now qualify as eligible issuers of payment stablecoins. The update corrects earlier guidance that unintentionally excluded these federally chartered institutions.
CFTC Aligns Stablecoin Rules with Federal Law
The revised staff letter expands the definition of payment stablecoins under CFTC oversight. It now includes national trust banks that operate across all fifty US states. Previously, the December 2025 guidance limited eligibility to state regulated trust companies. That restriction created uneven access for federally chartered institutions.
National trust banks focus on custody and asset services rather than retail banking. Therefore, the update recognizes their established role within regulated financial infrastructure. The revision follows the GENIUS Act becoming law in July 2025. That statute set national standards for US dollar stablecoins.
Stablecoin Issuance Standards Under GENIUS Act
The GENIUS Act permits only fully backed payment stablecoins. Issuers must maintain one to one reserves using cash or short term government securities. The framework excludes algorithmic and synthetic stablecoin models. Those designs depend on software or trading mechanisms instead of direct asset backing.
In December 2025, the Federal Deposit Insurance Corporation proposed a complementary framework. The proposal allows commercial banks to issue stablecoins through regulated subsidiaries. The FDIC Vice Chair recently called for clearer crypto banking guidelines to balance innovation and regulatory compliance effectively. FDIC oversight checks redemption policies reserve sufficiency and financial condition. Both the parent bank and subsidiary must meet GENIUS standards.
Futures Margin Rules Expand to Trust Bank Stablecoins
The CFTC also expanded its crypto collateral framework for futures trading. Stablecoins issued by national trust banks now qualify as acceptable margin. The update places them alongside Bitcoin and Ethereum. This change supports wider institutional participation in crypto linked derivatives.
The revision removes a two tier structure from earlier guidance. Previous rules favored state regulated issuers like Circle and Paxos. National trust banks had limited access despite federal charters. The correction establishes parity across eligible issuers.
Oversight Conditions for Derivatives Pilot Program
The margin update applies within the CFTC derivatives collateral pilot program. The pilot began in 2025 to test digital assets in regulated futures markets. Participating Futures Commission Merchants must meet enhanced reporting requirements. They must disclose digital asset holdings on a regular basis.
Firms must also report operational disruptions and cybersecurity incidents immediately. These controls aim to protect market integrity during the trial period. CFTC Chair Mike Selig linked the update to broader competitiveness goals. Industry participants including Plume Network highlighted improved settlement efficiency for institutional derivatives.
