Can Crypto Trust Firms Match Banks in U.S. Derivatives Settlements?

Crypto firms are pushing further into parts of the financial system long dominated by banks, with a key opening emerging in US derivatives clearing. A recent decision from the Commodity Futures Trading Commission (CFTC) allows derivatives clearinghouses to use trust companies for daily settlements—an activity previously limited to traditional banks under CFTC regulations.

The change matters because derivatives settlements are large, operationally critical flows—moving money to reflect gains and losses between clearing members. For regulated crypto custodians and infrastructure providers, the expanded eligibility could translate into more ways to support institutional trading. Still, the relief is not a permanent regulatory rewrite, leaving questions about how durable it will be amid shifting politics around the CFTC.

Key takeaways

• The CFTC issued no-action relief on Nov. 5 allowing clearinghouses to use trust companies for daily settlements, provided specific conditions are met.
• CME Group filings show settlement flows in the billions of dollars per day through clearing systems, highlighting the scale of potential demand for settlement services.
• The relief responds to an inconsistency: federal commodities law permits certain custody arrangements at trust companies, while CFTC Regulation 39.14 limited “settlement banks” to banks.
• The framework is reversible because the CFTC used staff no-action guidance rather than amending its regulations through formal rulemaking.
• Banking industry groups have challenged the broader expansion of trust and chartered digital-asset players, including through litigation aimed at the OCC’s trust bank approach.

Why derivatives settlement eligibility is a big deal

In derivatives markets, clearinghouses sit between buyers and sellers, ensuring trades are settled through a standardized clearing process. One part of that process involves moving funds between parties to reflect daily gains and losses. That is where trust companies may now be able to play a larger role.

According to CME Group regulatory filings, the operator transferred an average of $8.7 billion per business day through its clearing systems during the first half of 2026, up from $6.7 billion per business day in 2025. The transfers represent funds moving to settle gains and losses rather than the fees paid to settlement banks, but they still illustrate the size of the money movement supported by clearing infrastructure.

For crypto-linked settlement service providers, the main opportunity is not just scale—it’s eligibility. If trust companies can be used for daily settlement, then regulated custodians and settlement-adjacent entities may be able to offer services to clearinghouses that previously had to rely on banks for that function.

The CFTC’s Nov. 5 no-action relief and the regulatory gap it targets

The CFTC’s Division of Clearing and Risk issued no-action relief on Nov. 5 after a request on Oct. 29 from derivatives clearinghouse Nodal Clear. Under the relief, clearinghouses may use trust companies for daily settlements with clearing members, as long as they meet the same evaluation and monitoring requirements applied to traditional settlement banks.

The relief is designed to address a specific mismatch in the regulatory framework. Federal commodities law allows customer funds to be held at banks or trust companies, but CFTC Regulation 39.14 defines “settlement banks” as banks only. The CFTC’s action effectively bridges that inconsistency for the daily settlement use case.

Earlier coverage of CFTC-related changes has discussed how regulatory relief is being extended to adjacent parts of the market. In this case, the decision focuses on clearinghouse settlement operations rather than trading software or other market functions.

Who stands to benefit inside the crypto ecosystem

The most direct beneficiaries are likely regulated custodians already positioned to provide settlement-related functions for digital-asset derivatives. Nodal Clear’s request intersects with industry partnerships around stablecoins and US futures trading.

Cointelegraph reported that Nodal Clear partnered with Coinbase in 2025 to integrate USDC into US futures trading. Coinbase Custody Trust was expected to provide daily settlement services under that arrangement.

Coinbase has also been moving to strengthen its regulated footprint. Its national trust bank charter took effect on Nov. 6, enabling Coinbase National Trust Company—separate from Coinbase Custody Trust—to provide federally supervised digital asset custody services.

Other institutional-focused crypto firms have also been expanding in ways that overlap with settlement, collateral, and derivatives. Cointelegraph noted that BitGo launched its Global Markets division on Nov. 4, combining derivatives trading, financing, collateral management, and settlement capabilities. More broadly, multiple major crypto firms have secured US national trust bank approvals in recent months, including Circle, Ripple, Crypto.com, and Bridge (owned by Stripe), reflecting how competitive pressure is pushing more crypto players toward federally regulated banking-adjacent structures.

Banks push back—and the CFTC relief is still not permanent

As trust companies and chartered digital-asset institutions expand into services that banks provide, traditional banking groups have challenged the approach. In October, the Independent Community Bankers of America (ICBA) sued the Office of the Comptroller of the Currency (OCC), arguing that national trust bank charter rules could let crypto firms conduct certain banklike activities without meeting all conventional bank requirements. Cointelegraph previously reported on the dispute in a separate article.

Speaking to Cointelegraph, Cody Carbone, CEO of The Digital Chamber, argued that the CFTC relief does not place trust companies in a better or worse regulatory position than banks. Carbone said trust companies and banks already compete within the scope of their own charters and that the decision gives clearinghouses additional options without preventing banks from retaining their business. He also cautioned that “a trust company charter is not a regulatory shortcut.”

Even with the positive step, durability remains uncertain. The CFTC issued staff no-action relief, not a formal amendment to its regulations. Under the terms described in the no-action framework, CFTC staff would not recommend enforcement action if clearinghouses use trust companies for daily settlements while meeting specified conditions—but the underlying regulation is unchanged. Staff guidance can be withdrawn, and the letter’s stability could depend on the CFTC’s leadership and priorities.

As Jordan Yeagley of Buchanan Ingersoll & Rooney told Cointelegraph, a change in Commission leadership could withdraw the CFTC letter, and a more formal Commission action—like amending the regulation—would be required to avoid that risk.

This is particularly relevant given the CFTC’s current leadership dynamics. Michael Selig has served as CFTC Chair since December 2025 and remains the regulator’s sole commissioner, with four seats vacant while the agency expands its work on digital asset markets.

Political shifts also matter for regulator oversight. After the Nov. 3 midterm elections, Democrats won control of both chambers of Congress, meaning the incoming Congress in January will have greater power to scrutinize the CFTC’s regulatory agenda. The Senate is also expected to play a role in confirming nominees to fill the agency’s vacant commissioner seats, while the House and Senate Agriculture Committees oversee the regulator.

What to watch next

Investors and market participants should focus on whether the CFTC’s trust-company settlement relief becomes a durable regulatory change or remains contingent on staff guidance. The key signal will be whether the agency moves toward formal rulemaking that would make the settlement-bank definition less restrictive, especially as the CFTC’s political and leadership environment continues to evolve.