CFTC’s New Rule: Trust Banks and Stablecoins – What Could Go Wrong?

by

Well, folks, gather ’round and lend me your ears! It appears the US Commodity Futures Trading Commission (CFTC) has decided to shake things up a bit by givin’ a nod to those fancy payment stablecoins from our dear national trust banks. Yes, indeed! This grand gesture is all part of a larger scheme, as the CFTC aims to ride the digital wave while keepin’ in step with President Trump’s crypto-loving whims.

CFTC Gives Green Light for FCMs to Embrace Bank-Issued Stablecoins

In a press release hot off the presses on February 6, the good folks over at the CFTC’s Market Participants Division (MPD) declared an update to their earlier missive, which was known as Staff Letter 25-40. A mouthful, isn’t it?

This document first made its appearance in December, granting all CFTC-registered futures commission merchants (FCM) permission to accept non-securities digital assets-like those oh-so-popular payment stablecoins-as margin collateral. They can even hoard specific proprietary stablecoins in separate customer accounts, like squirrels stashing nuts for winter!

But hold your horses! The original memo only recognized stablecoins from state-regulated money transmitters or trust companies. Now, the CFTC has had a change of heart, realizing that a payment stablecoin could also be birthed by a national trust bank. Fancy that!

During Trump’s glorious first term, the US saw the birth of its very first national trust banks, set up to dabble in custody and issuance of payment stablecoins. And fear not, dear reader; the CFTC insists they never meant to leave out these national trust banks from the party-this new version of CFTC Letter 25-40 makes that as clear as a sunny day!

CFTC Chairman Michael S. Selig is tickled pink with this reissue, praising the expanding role of national trust banks and America’s undeniable prowess in the realm of stablecoin innovation. Well, bless his heart!

“I’m pleased that the CFTC staff is amending its previously issued no-action letter to expand the list of eligible tokenized collateral to include payment stablecoins issued by these institutions (national trust banks). With the enactment of the GENIUS Act and the CFTC’s new eligible collateral framework, America is the global leader in payment stablecoin innovation,” he proclaimed, likely with a twinkle in his eye.

National Bank Charter: Digital Asset Banks Yearning for Their Place in the Sun

In other news, the competition among digital asset firms to snag themselves a national bank charter is akin to a bunch of hungry raccoons fighting over the last slice of pizza. This endeavor reflects a broader ambition to weave cryptocurrency services into the fabric of our regulated financial system. A national trust bank charter lets these crypto companies frolic under federal supervision, giving them a shiny badge of credibility and opening doors to institutional partnerships.

In January 2025, Anchorage Digital became the first crypto-native firm to get such a coveted approval. Now, several others like Coinbase, Circle, Ripple, and BitGo are also knocking on the doors of the OCC, hoping to broaden their service offerings like a buffet table on Thanksgiving Day!

Read More

2026-02-08 16:07