Michaela
The Market Participants Division of the Commodity Futures Trading Commission’s (CFTC) has revised an earlier staff letter to reflect the standards set by the GENIUS Act, specifically expanding the definition of “payment stablecoins” to clarify eligible issuers.
Key Points
- The CFTC now recognizes national trust banks as eligible issuers of payment stablecoins.
- The update aligns with the GENIUS Act and expands the definition of “payment stablecoin.”
- Issuing banks must meet strict compliance standards, including collateralization, redemption policies, and regulatory oversight.
On February 6, the CFTC clarified that national trust banks are now considered eligible issuers of payment stablecoins under its no-action guidance. The Market Participants Division reissued its prior staff letter with an expanded definition of “payment stablecoin” to explicitly include these banks, addressing a gap in the original guidance. The earlier letter had set a no-action stance for futures commission merchants managing non-securities digital assets, including payment stablecoins used 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. These national trust banks continue to play an important role in the payment stablecoin ecosystem,” Chairman Michael Selig stated in the release. “I’m pleased that the CFTC staff is amending its previously issued no-action letter to expand the list of eligible tokenized collateral to include payment stablecoins issued by these institutions. With the enactment of the GENIUS Act and the CFTC’s new eligible collateral framework, America is the global leader in payment stablecoin innovation,” he added.
Related: Judge Allows Insider Trading Lawsuit Against Coinbase Execs
In December 2025, the U.S. Federal Deposit Insurance Corporation’s (FDIC) unveiled a proposal detailing how banks could issue stablecoins under the GENIUS Act. The plan allows banks to create these tokens through FDIC-supervised subsidiaries, with regulators reviewing both the parent company and subsidiary to ensure full compliance.
The framework sets strict standards for stablecoin issuance, including mandatory redemption rights for holders and full collateralization with secure assets like cash and short-term US Treasury securities. Regulators would also evaluate the financial health, risk controls, and operational safeguards of both the bank and its subsidiary to prevent systemic risks and ensure the stablecoins operate safely within the broader financial system.
Related: Pure Fantasy to Delay: Lummis Joins White House CLARITY Push
The move signals a broader shift in the U.S. regulatory approach toward digital assets, spotlighting the growing role of traditional financial institutions in the stablecoin ecosystem. By formally recognizing national trust banks as issuers, regulators are aiming to bring greater oversight, stability, and transparency to the market, while encouraging responsible innovation. The CFTC’s revision could pave the way for more widespread adoption of compliant stablecoins by institutional investors and corporate clients.
Frequently Asked Questions
MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
