A Nov. 5 no-action letter from staff at the U.S. Commodity Futures Trading Commission (CFTC) gives derivatives clearing organizations a path to use trust companies for members’ daily settlement, provided they meet specified assessment and monitoring requirements. The move could open new business for regulated crypto custodians and give clearinghouses an alternative to banks, but it does not change the underlying rule and could be reversed.
CME moved $8.7 billion a day in the first half of 2026
The scale of settlement flows points to the potential value of the business. CME Group’s clearing system moved an average of about $8.7 billion a day in the first half of 2026, up from $6.7 billion in 2025. The funds are used mainly to settle gains and losses between clearing organizations; they are not fee revenue earned by settlement banks. They do, however, show the volume of money supporting derivatives markets.
The exemption followed an Oct. 29 request from derivatives clearing organization Nodal Clear. Under the conditions set by CFTC staff, a clearing organization using a trust company must assess and monitor it to the same standard applied to a traditional settlement bank.
The letter addresses a gap between federal commodities law and the CFTC’s rules. Federal law allows customer funds to be held at banks or trust companies, while CFTC Regulation 39.14 defines a settlement bank as a bank. The no-action letter temporarily gives clearing organizations room to use trust companies without changing the regulation itself.
Nodal Clear partnered with Coinbase in 2025 to integrate USDC into U.S. futures trading. The arrangement was expected to use Coinbase Custody Trust for daily settlement. The CFTC staff decision provides a regulatory path for that kind of service, subject to the conditions in the letter.
Crypto firms expand institutional services
Crypto companies have also been building out services for institutional clients. On Nov. 4, BitGo launched its Global Markets division, offering derivatives trading, financing, collateral management and settlement.
Coinbase National Trust Company’s national trust bank charter took effect on Nov. 6. Unlike Coinbase Custody Trust, it is a separate entity that can provide digital-asset custody under federal oversight. Circle, Ripple, Crypto.com and Stripe-owned Bridge have also received U.S. national trust bank-related approvals in recent months from the Office of the Comptroller of the Currency (OCC).
The expansion is bringing crypto firms into financial services traditionally dominated by banks and creating overlap between specialized trust companies and conventional lenders. The regulatory boundaries around digital-asset custody, settlement and collateral management have become a point of competition across the sector.
Banking groups challenge crypto trust charters
Traditional banking groups have pushed back against the growth of crypto-affiliated trust companies. In October, the Independent Community Bankers of America (ICBA) sued the OCC, arguing that national trust bank charter rules could allow crypto firms to conduct some bank-like activities without meeting all the requirements imposed on traditional banks.
Cody Carbone, CEO of The Digital Chamber, said the CFTC exemption does not put trust companies at either an advantage or a disadvantage relative to traditional banks. Trust companies and banks compete within the scope of their respective charters, he said, and the new arrangement expands clearing organizations’ choices without preventing banks from continuing to provide settlement services. Carbone also said a trust company charter is not a way to sidestep regulation.
CFTC staff can withdraw the letter
The decision came through a staff no-action letter, not a formal amendment to CFTC rules. If a clearing organization meets the stated conditions, staff will not recommend enforcement action over its use of a trust company for daily settlement. But the letter leaves the existing rule intact and can be withdrawn. A formal rule change would generally involve steps such as public comment, giving it a different level of regulatory permanence.
Jordan Yeagley, a shareholder at Buchanan Ingersoll & Rooney, said a change in CFTC leadership could lead staff to withdraw the letter. To reduce that risk, he said, the commission would need to take more formal action, such as amending the relevant regulation.
For now, the Nov. 5 decision provides conditional room for the service rather than a lasting change to settlement rules. Long-term partnerships between clearing organizations and custodians will depend on compliance with the letter’s conditions and whether the CFTC pursues a formal rule change.