The Commodity Futures Trading Commission (CFTC) reissued a staff letter on Friday to broaden which institutions may be considered issuers of payment stablecoins, explicitly recognizing national trust banks as eligible issuers of fiat‑pegged tokens.
The CFTC amended Staff Letter 25‑40 (reissued with expanded language) to include national trust banks, financial institutions authorized to operate across all 50 states. The division said it “did not intend to exclude national trust banks as issuers of payment stablecoins for purposes of Letter 25‑40,” and reissued the letter with an expanded definition of payment stablecoin.
National trust banks generally do not offer retail services such as lending or checking accounts; they typically provide custodial services, act as executors, and deliver asset‑management and fiduciary services. The CFTC’s clarification places them explicitly within the scope of entities that can issue regulated, fiat‑backed stablecoins.
The move comes amid broader U.S. stablecoin regulation following the July 2025 signing of the GENIUS Act, a federal framework for dollar‑pegged stablecoins. Under that law, recognized stablecoins must be overcollateralized and backed 1:1 with fiat deposits or short‑term government securities; algorithmic and synthetic dollar designs are excluded.
Separately, in December 2025 the Federal Deposit Insurance Corporation (FDIC) proposed a framework allowing commercial banks to issue stablecoins via subsidiaries subject to FDIC oversight. The proposal outlines requirements including clearly defined redemption policies, sufficient collateral (cash deposits and short‑term government securities), and assessments of the parent and subsidiary’s financial health and compliance with GENIUS Act standards.
Cointelegraph produces this article in accordance with its editorial policy and encourages readers to verify information independently.
