The U.S. Commodity Futures Trading Commission (CFTC) is expanding its digital asset collateral framework on February 6.
This update grants clear authority for futures commission merchants (FCMs) to accept stablecoins issued by national trust banks as margin.
Bank-Issued Stablecoins Entered U.S. Derivatives Margin
The renewed regulation is detailed in Staff Letter 25-40 and signifies a critical course correction in the guidance presented in December.
The framework at that time had inadvertently created a two-tiered system by limiting eligible payment stablecoins to those issued only by state-regulated money transfer companies or trust companies.
This shortcoming had left federally licensed national security banks outside the rapidly growing tokenized derivative collateral market.
Therefore, the previous exclusions from the eligible collateral list were a serious mistake and required urgent correction.
As a result, this new regulation confirms that stablecoins issued by national security banks are now on equal footing with state-regulated issuers (like Circle) and the assets of Paxos.
CFTC Chairman Mike Selig described this change as a strategic move reinforcing the U.S.'s dominance in the digital asset sector.
Selig stated on Friday, 'With the GENIUS Act and CFTC’s new eligible collateral framework, America has become a global leader in stablecoin innovation.'
The update is particularly critical for the clearing sector, which has struggled to integrate digital assets into traditional clearing processes.
Salman Banei, chief legal officer of Plume Network, pointed out the operational significance of the amendment, stating:
'Moreover, eligible stablecoins under the GENIUS Act could be used as a payment leg in institutional derivative trades,' it said.
The commission states that it will not recommend any punitive measures for FCMs accepting newly approved assets. However, this flexibility is only valid if FCMs comply with the advanced reporting protocols outlined in the no-action letter.
On the other hand, this latest move is part of a broader pilot program initiated by the commission last year.
In this context, FCMs can use Bitcoin, Ethereum, and eligible stablecoins as collateral for derivative trading.
However, the CFTC emphasized that this relief is offered under serious oversight conditions.
FCMs involved in the pilot are required to frequently report their digital asset portfolios in detail and to promptly report significant operational disruptions, outages, or cybersecurity incidents.
This reporting mechanism essentially moves the sector into a regulatory sandbox: the operational resilience demonstrated during this trial period will also determine the long-term sustainability of crypto collateral.