The US Commodity Futures Trading Commission (CFTC) has expanded its criteria for payment stablecoins to include national trust banks. In a revised staff letter issued on Friday, the regulator clarified that these institutions are now eligible to issue fiat-backed stablecoins.
National trust banks operate across all 50 US states but typically do not offer traditional retail banking services like loans or checking accounts. Instead, they focus on custody, asset management, and fiduciary services. The CFTC said it did not intend to exclude these banks in its earlier guidance and updated the definition to remove any confusion.
The action is a reflection of the evolving stablecoin regulatory landscape after the GENIUS Act was signed into law in July 2025. The regulation restricts issuance to properly collateralised tokens and establishes a defined framework for stablecoins backed by the US dollar.
Stablecoins are required by the regulations to be 1:1 backed by cash or short-term government securities. Synthetic and algorithmic stablecoins are still not included in the framework.
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