CFTC Broadens Stablecoin Collateral Rules, Clearing Path for Bank-Issued Tokens

The U.S. Commodity Futures Trading Commission expanded its guidance on the use of stablecoins as collateral in derivatives markets, reissuing Staff Letter 25-40 with a key change that adds national trust banks to the list of eligible issuers. The update aims to align the agency’s no-action position with recent developments in federal stablecoin law and bank charters. Expanded Collateral Definition Includes Federal Banks The CFTC’s Market Participants Division on Feb. 6, 2026, issued a revised version of Staff Letter 25-40 that widens the definition of “payment stablecoin” to explicitly allow tokens issued by national trust banks to be treated as permissible collateral under the letter’s no-action framework. This framework lets futures commission merchants consider certain digital assets, including payment stablecoins, as customer margin collateral and lets firms hold proprietary stablecoins in segregated customer accounts under specified conditions. The original letter, issued Dec. 8, 2025, excluded national trust banks by omission, focusing on stablecoins from state-regulated money transmitters or trust companies. After CFTC staff realized the wording overlooked federally chartered institutions, they corrected the definition to reflect the current regulatory landscape. CFTC Chairman Michael S. Selig emphasized the change reflects the role national trust banks now play in the stablecoin ecosystem. He noted the Office of the Comptroller of the Currency has granted charters to these banks, enabling them to custody and issue payment stablecoins under federal supervision. The expanded definition ensures those stablecoins can serve as eligible collateral without conflicting with the CFTC’s no-action position. Impacts on Markets and Regulation The revised guidance comes as part of broader federal efforts to create a regulated stablecoin framework, including implementation steps following the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) enacted in July 2025. That law requires stablecoin issuers to meet reserve, audit and supervision standards and defines permissible issuers, including bank subsidiaries and federally chartered entities. By aligning its collateral rules with this framework, the CFTC is smoothing the way for regulated financial institutions to participate in digital asset markets. Futures commission merchants will still need to comply with conditions such as risk safeguards, haircut policies set by clearing organizations and reporting requirements to rely on the no-action relief. Industry analysts say the update could encourage greater use of tokenized collateral in U.S. futures markets. Allowing bank-issued stablecoins into regulated collateral systems may lower barriers for traditional and crypto firms alike, provided issuers meet reserve transparency and risk management standards. The CFTC’s revision expands stablecoin collateral eligibility to include federally chartered national trust banks, aligning derivatives rules with federal stablecoin legislation and potentially broadening institutional participation in token-based collateral markets.