Crypto companies are pushing deeper into financial services traditionally dominated by banks, seeking a role in U.S. derivatives settlement, where billions of dollars change hands every day.
The push comes as regulators expand the services companies can offer to trust firms, even as traditional banking groups question parts of the regulatory framework that governs crypto firms’ expansion into bank-like activities.
A Nov. 5 decision by the Commodity Futures Trading Commission (CFTC) highlights the shift that will allow derivatives clearinghouses to use escrow companies for daily settlements with clearing members, a function previously limited to banks under the agency’s rules.
The relief could create new business opportunities for regulated crypto custodians, but its revocable nature and changes in the U.S. political landscape raise questions about the durability of the regulatory opening.
Crypto firms are targeting billions in daily derivatives settlements
The scale of the derivatives settlement business provides some perspective on the opportunities.
CME Group, one of the world’s largest derivatives market operators, transferred on average $8.7 billion per business day through its clearing systems in the first half of 2026, up from $6.7 billion per day in 2025, according to regulatory filings.
These figures represent funds transferred between clearing firms to offset gains and losses, and not fees collected by settlement banks. Nevertheless, they highlight the scale of financial flows supported by the infrastructure that trust companies could increasingly help to provide.
The CFTC’s Division of Clearing and Risk issued Relief without measures on Nov. 5, following a request from derivatives clearinghouse Nodal Clear on Oct. 29, and allowed clearinghouses to use escrow companies for daily settlement if they meet the same valuation and monitoring requirements that apply to traditional settlement banks.
The decision resolves a contradiction between the Federal Commodities Act, which allows customer funds to be held in banks or trust companies, and CFTC Regulation 39.14, which defines settlement banks as banks only.
Knot clear partner with Coinbase in 2025 to integrate USDC into US futures trading. As Cointelegraph has learned, Coinbase Custody Trust was already expected to provide daily settlement services as part of the agreement.
Related: CFTC extends regulatory relief for passive trading software providers
Other crypto firms have also expanded their institutional financial services. On November 4, BitGo launched its Global Markets division, which combines derivatives trading, financing, collateral management and settlement functions.
Also on November 6, Coinbase’s National Trust Bank Charter came into effect, allowing Coinbase National Trust Company, a separate entity from Coinbase Custody Trust, to provide government-supervised digital asset custody services.
Several major crypto firms have also received approval from a US national trust bank in recent months, including Circle, Ripple, Crypto.com and Stripe-owned Bridge. The charters issued by the Office of the Comptroller of the Currency (OCC) reflect the industry’s expansion into government-regulated financial services.
Traditional banks dispute the growing role of crypto firms
The expansion of specialized trust companies has raised objections from traditional banking groups.
In October, the Independent Community Bankers of America sued the OCC, arguing that its national trust bank charter rules could allow crypto firms to engage in certain bank-like activities without meeting all of the requirements imposed on conventional banks.
The lawsuit reflects a broader disagreement over how specialized financial institutions should be regulated as they expand into services also offered by banks.
Cody Carbone, CEO of The Digital Chamber, told Cointelegraph that the CFTC’s relief does not put trust companies in a better or worse position than traditional banks.
Trust companies and banks are already competing for services allowed under their respective charters, Carbone said, adding that the decision gives clearinghouses more options without preventing banks from maintaining their business. “A trust company charter is not a regulatory shortcut,” he said.
Revocable relief faces a changing regulatory landscape
Despite the potential opportunities, the CFTC’s decision leaves questions about how confidently trust companies can establish a long-term role in derivatives settlement.
Instead of formally changing its regulations, the agency issued a no-action letter. The letter states that CFTC staff will not recommend enforcement action against clearinghouses that use escrow companies for day-to-day settlement if certain conditions are met.
Unlike a formal rule change, which generally requires a public notice and comment process, staff inaction does not change the underlying regulation and may be withdrawn.
“A change in Commission leadership could retract the CFTC letter. To avoid this potential risk, more formal Commission action, such as a regulation change, would be required,” Jordan Yeagley, shareholder at Buchanan Ingersoll & Rooney, told Cointelegraph.
The uncertainty comes at a politically significant time for the agency. CFTC Chairman Michael Selig remains the regulator’s sole commissioner, despite a statutory structure calling for five commissioners. Selig has led the agency since December 2025, leaving four seats vacant as the regulator expands its work in digital asset markets.
The political environment is also changing after the US midterm elections on November 3rd, in which Democrats gained control of both chambers of Congress.
The new Congress, which takes office in January, will have greater authority to scrutinize the CFTC’s regulatory agenda. The Senate also plays a role in confirming nominees to fill the agency’s vacant commission seats, while the House and Senate Agriculture Committees oversee the regulator.
Senator Sherrod Brown, who won Ohio’s Senate election on November 3 despite more than $60 million in opposition spending from crypto-funded political action committees, could take a prominent role on the Senate Agriculture Committee.
Magazine: What the US Democratic midterm elections mean for the CLARITY Act
