TLDR:

• The CFTC update formally includes national trust banks as approved issuers of payment stablecoins for derivatives margin use.
• Staff Letter 25-40 still requires full reserve backing and strict redemption rules for qualifying payment stablecoins.
• The guidance aligns federal trust banks with existing state-regulated stablecoin issuers like Circle and Paxos.
• Combined with the GENIUS Act, the rule signals tighter integration of stablecoins into U.S. financial markets.

The U.S. Commodity Futures Trading Commission has expanded its regulatory guidance on payment stablecoins used in derivatives markets. The change allows national trust banks to qualify as approved issuers under an existing no-action framework. 

The update removes a key limitation that had excluded federally chartered trust institutions. It signals deeper integration of stablecoins into regulated financial infrastructure.

CFTC Updates Definition of Payment Stablecoins

The CFTC’s Market Participants Division reissued Staff Letter 25-40 with a revised definition of payment stablecoins. The clarification confirms that national trust banks qualify as permitted issuers.

The original letter, released in December 2025, granted no-action relief to futures commission merchants. It allowed them to accept qualifying payment stablecoins as customer margin collateral.

The guidance also permits firms to hold proprietary stablecoins in segregated customer accounts. These holdings count toward regulatory calculations under strict risk controls.

According to a CFTC press release, staff later realized the original wording unintentionally excluded national trust banks. The revision corrects that oversight and aligns them with state-regulated issuers such as Circle and Paxos.

The framework requires stablecoins to maintain full reserve backing and clear redemption rights. It also mandates operational safeguards and compliance with existing risk management standards.

Social commentary from crypto analysts described the update as a major step for stablecoin adoption in regulated derivatives trading. The reaction focused on its impact on market structure rather than token prices.

GENIUS Act and FDIC Framework Shape Stablecoin Policy

The revised CFTC guidance builds on the GENIUS Act signed into law in July 2025. The legislation created the first federal framework for payment stablecoins used in payments and transfers.

The law introduced reserve requirements and defined oversight roles for both bank and nonbank issuers. It also opened formal pathways for national institutions to participate in stablecoin issuance.

In December 2025, the FDIC proposed a separate rule for banks to issue stablecoins through subsidiaries. That proposal requires supervisory approval and safety and soundness reviews.

The FDIC recently extended its public comment period, according to regulatory notices cited in February 2026 updates. The proposal remains under consideration and has not yet taken effect.

Together, the CFTC and FDIC actions point to a coordinated regulatory direction. Stablecoins now sit closer to traditional banking and derivatives infrastructure.

CFTC Chairman Michael Selig noted that national trust banks have played a role in custody and issuance since their creation under earlier OCC charters. The updated letter reflects their continued position in the payment stablecoin ecosystem.

The move narrows regulatory gaps between state and federally chartered issuers. It also reinforces the U.S. strategy to formalize digital asset markets under post-GENIUS Act policy.