- CFTC expands stablecoin definition to include trust banks as issuers.
- Trust banks permitted to custody and issue payment stablecoins.
- Impacts futures commission merchants’ collateral usage.
The changes facilitate broader access to stablecoin markets and reinforce the United States’ leadership in stablecoin innovation, though immediate market impacts remain unclear.
Lede
The Commodity Futures Trading Commission (CFTC) has reissued Staff Letter 25-40, expanding the “payment stablecoin” definition to include national trust banks. This revision allows the use of such stablecoins as collateral by futures commission merchants.
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The reissuance addresses an unintended exclusion in the December 2025 letter. National trust banks have now been incorporated into the CFTC’s stablecoin usage policy, a move supported by CFTC Chairman Michael S. Selig.
This change is expected to enhance national trust banks’ role within the payment stablecoin ecosystem. The decision aids futures commission merchants in using diverse forms of collateral, improving market efficiency.
The inclusion of national trust banks follows historical precedent, with the Office of the Comptroller of the Currency (OCC) originally chartering these entities. This action underscores their evolving position in stablecoin issuance.
This adjustment does not involve new funding or grant allocations but significantly influences collateral operations. Affected assets include Bitcoin, Ether, and payment stablecoins, which can serve as customer margin collateral for FCMs.
Experts suggest the decision could solidify the U.S. position as a leader in payment stablecoin innovation. Regulatory support for trust banks might enhance technological outcomes and foster industry advancements, although market reactions remain observed.
“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. 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.” — Michael S. Selig, Chairman, CFTC
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