# Crypto Trust Firms Challenge Banks in US Derivatives Settlement Markets New regulatory relief allows trust companies to handle daily derivatives settlements alongside traditional banks. - **Source:** [Cointelegraph.com News](https://brifing.si/source/2e81e982-0137-4db0-8ac2-351f37085775) - **Published:** 2026-11-10 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/81ea98e7-8a18-4c17-9856-fe272dfc7e9b ## Regulatory Shift in Settlements The Commodity Futures Trading Commission issued no-action relief on November 5, 2026, allowing derivatives clearinghouses to utilize trust companies for daily settlements. This function was previously restricted exclusively to traditional banks under Regulation 39.14. The move follows an October 29 request from Nodal Clear to modernize its clearing infrastructure. ## Market Scale and Opportunity The derivatives settlement market involves massive daily financial flows. CME Group reported transferring an average of 8.7 billion dollars per business day during the first half of 2026. This represents a significant increase from the 6.7 billion dollars recorded in 2025, highlighting the substantial volume trust companies aim to capture. ## Industry Expansion Efforts Major crypto firms are aggressively securing national trust bank charters from the Office of the Comptroller of the Currency. Companies including Circle, Ripple, Crypto.com, and Stripe-owned Bridge have obtained these approvals. Additionally, BitGo launched a Global Markets division in November to integrate trading, financing, and settlement capabilities for institutional clients. ## Banking Sector Legal Challenges Traditional banking groups are actively opposing this expansion. The Independent Community Bankers of America filed a lawsuit in October against the OCC, arguing that crypto firms should not conduct bank-like activities without meeting identical regulatory requirements. This litigation underscores deep disagreements regarding the oversight of specialized financial institutions entering traditional banking domains. ## The No-Action Letter Mechanism The CFTC relief is provided via a no-action letter rather than a formal rule amendment. This means the agency will not recommend enforcement action if specific monitoring requirements are met, but the underlying regulation remains unchanged. Consequently, the relief is revocable and lacks the permanence of a formal regulatory update. ## Political and Leadership Uncertainty The long-term durability of this regulatory opening remains questionable due to the US political landscape. CFTC Chair Michael Selig currently serves as the agency's sole commissioner, with four seats vacant. The incoming Congress, following the November 3 midterm elections, will hold significant power to scrutinize the regulator's agenda and confirm new leadership. ## Strategic Integration Partnerships Collaboration between clearinghouses and crypto firms is already underway to facilitate these services. Nodal Clear partnered with Coinbase in 2025 to integrate USDC into futures trading. Coinbase Custody Trust is expected to provide daily settlement services under this arrangement, demonstrating how trust companies are positioning themselves within existing financial infrastructure. ## Future Outlook for Custodians While trust companies gain new business opportunities, they face ongoing scrutiny from lawmakers and traditional competitors. The ability of these firms to maintain a permanent role in derivatives settlement depends on future commission leadership and potential legislative changes. Market participants must monitor upcoming congressional oversight to gauge the stability of these services. ## Sources covering this story - https://cointelegraph.com/news/crypto-trust-firms-compete-banks-us-derivatives-settlements?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._