The Commodity Futures Trading Commission (CFTC) reissued a staff letter to clarify which institutions may be treated as issuers of fiat‑pegged payment stablecoins, explicitly adding national trust banks to the list of eligible issuers.
The agency amended Staff Letter 25‑40, expanding the definition of “payment stablecoin” and stating it did not intend to exclude national trust banks from issuing regulated, fiat‑backed tokens. National trust banks are federal institutions authorized to operate in all 50 states and typically focus on custodial, executor, asset‑management and fiduciary services rather than retail banking like lending or checking accounts. The CFTC’s update places those banks squarely within the regulated pool of potential stablecoin issuers.
This clarification arrives in the context of a broader U.S. regulatory framework for dollar‑pegged stablecoins. The GENIUS Act, enacted in July 2025, established federal rules requiring recognized stablecoins to be overcollateralized and backed on a 1:1 basis by fiat deposits or short‑term government securities. The law explicitly excludes algorithmic and synthetic dollar designs from qualifying as recognized stablecoins.
Complementing the CFTC’s guidance, the Federal Deposit Insurance Corporation (FDIC) proposed in December 2025 a framework that would allow commercial banks to issue stablecoins through subsidiaries overseen by the FDIC. That proposal sets out requirements such as clear redemption policies, sufficient collateral (cash deposits and short‑term government securities), and rigorous assessments of the financial health and compliance of both the parent bank and the issuing subsidiary with GENIUS Act standards.
Taken together, these developments tighten regulatory expectations for fiat‑backed stablecoins and clarify which federally chartered institutions can serve as issuers. Market participants seeking to issue or partner on stablecoin products should review the updated CFTC letter, the GENIUS Act requirements, and the FDIC’s proposed framework to ensure compliance with the evolving U.S. regime.