The Commodity Futures Trading Commission has expanded its regulatory definition of “payment stablecoins” to explicitly include those issued by national trust banks. This move, which amends earlier no-action guidance, aligns with standards set by the GENIUS Act and clarifies that banks chartered to custody and issue stablecoins are eligible issuers. The update aims to bring greater oversight and stability to the stablecoin market by formally recognizing these traditional financial institutions.
The Market Participants Division of the Commodity Futures Trading Commission revised a staff letter on February 6 to reflect the GENIUS Act. The update expands the definition of “payment stablecoins” to clarify that national trust banks are eligible issuers.
The earlier letter had established a no-action stance for futures commission merchants handling non-securities digital assets. This included using compliant payment stablecoins as customer margin collateral.
“During President Trump’s initial term, the Office of the Comptroller of the Currency made history by chartering the first national trust banks with authority to custody and issue payment stablecoins,” stated CFTC Chairman Michael Selig. He expressed pleasure that the staff amended the letter to include payment stablecoins from these institutions.
The framework sets strict standards for stablecoin issuance under the GENIUS Act. Issuing banks must meet requirements including full collateralization with secure assets and mandatory redemption rights for holders.
In December 2025, the Federal Deposit Insurance Corporation unveiled a proposal detailing how banks could issue stablecoins. The plan allows for issuance through FDIC-supervised subsidiaries, with regulators reviewing both entities for compliance.
The move signals a broader regulatory shift toward digital assets in the United States. By formally recognizing national trust banks as issuers, regulators aim to encourage responsible innovation within the stablecoin ecosystem.
