The U.S. Commodity Futures Trading Commission (CFTC) has expanded a recent staff advisory to explicitly allow payment stablecoins issued by national trust banks to be used as margin collateral — a move that tightens regulatory clarity as Washington pushes a pro-crypto agenda. What changed In a Feb. 6 press release, the CFTC’s Market Participants Division updated CFTC Staff Letter 25-40 (the “Staff No-Action Position Regarding Digital Assets Accepted As Margin Collateral”). The original letter, issued Dec. 8, let CFTC-registered futures commission merchants (FCMs) accept certain non-securities digital assets — including payment stablecoins — as margin collateral and permitted some proprietary stablecoins to be held in segregated customer accounts. The earlier version, however, only named state-regulated money transmitters and state trust companies as eligible issuers. The update makes clear that nationally chartered trust banks can also issue qualifying payment stablecoins. Why it matters By formally recognizing national trust banks as eligible stablecoin issuers for margin purposes, the CFTC removes a point of regulatory ambiguity for FCMs and crypto firms seeking to operate within established derivatives markets. That clarity could increase the utility and demand for bank-issued payment stablecoins in futures and other margined trading, while encouraging deeper ties between digital-asset firms and federally regulated institutions. Regulatory context and reaction CFTC Chairman Michael S. Selig praised the amendment, saying the staff action expands the list of eligible tokenized collateral to include payment stablecoins issued by national trust banks. He linked the move to broader policy changes — including the GENIUS Act and the CFTC’s new eligible collateral framework — and framed the U.S. as a leading jurisdiction for payment stablecoin innovation. Broader industry implications The change comes amid a rush by crypto firms to secure national bank charters or conditional approvals, a strategy companies view as a path to federal oversight, greater credibility, and expanded institutional partnerships. Anchorage Digital was the first crypto-native firm to win such approval in January 2025; other firms such as Coinbase, Circle, Ripple, and BitGo have reported conditional OCC approvals as they seek to broaden product and custody offerings. Bottom line The CFTC’s clarification reduces legal uncertainty for market participants using tokenized dollar equivalents in margining and signals continued U.S. regulatory momentum to fold digital-assets into the regulated financial system — a development that could accelerate institutional adoption of bank-backed stablecoins in trading and custody ecosystems. Read more AI-generated news on: undefined/news