CFTC Allows National Trust Banks to Issue a Dollar Stablecoin Under GENIUS Act Framework

The U.S. Commodity Futures Trading Commission (CFTC) has updated its guidance to include national trust banks as eligible issuers of dollar-backed stablecoins according to CoinPaper. This revision expands the definition of 'payment stablecoin' under Staff Letter 25-40, allowing such tokens to be used as collateral in derivatives markets as the CFTC clarified. The move aims to align the CFTC's no-action position with the broader regulatory developments in the stablecoin space according to regulatory analysis.

The revised letter corrects an earlier omission in the December 2025 version of Staff Letter 25-40, which inadvertently excluded stablecoins from federally chartered national trust banks according to the CFTC's own guidance. These institutions, which offer custodial and asset management services, can now issue stablecoins that qualify as margin collateral for futures commission merchants (FCMs) as the CFTC stated. The CFTC emphasized that this update does not relax compliance requirements but rather ensures consistent treatment of eligible stablecoins according to regulatory commentary.

Market participants have welcomed the update as a step toward integrating stablecoins into regulated financial infrastructure. CFTC Chairman Michael Selig highlighted the move as part of a broader effort to position the U.S. as a leader in stablecoin innovation according to official statements. By recognizing national trust banks, the CFTC is promoting a more inclusive and structured market for tokenized collateral as analysts note.

What Analysts Are Watching

Industry experts are closely monitoring how this change will affect the derivatives market. Futures commission merchants can now use stablecoins issued by federally chartered national trust banks with greater confidence according to market reports. However, they must continue to adhere to safeguards like segregation requirements and reporting standards as the CFTC requires. The CFTC emphasized that no-action relief is conditional on compliance with these protocols according to regulatory guidance.

The updated guidance also reflects broader legislative efforts, including the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, passed in July 2025 according to legal analysis. The law requires stablecoin issuers to meet reserve and audit standards, and its implementation has already influenced regulatory decisions as the CFTC reported.

What Are the Implications for Derivatives Market?

The CFTC's move is expected to streamline operations for FCMs seeking to use digital assets as collateral. By expanding the list of eligible stablecoin issuers, the agency is helping to reduce fragmentation in the derivatives market according to industry analysis. This could also lower entry barriers for new participants, particularly those from the traditional financial sector as market observers noted.

Firms like Plume Network have welcomed the change, noting its significance for institutional derivatives settlement according to company statements. The update aligns stablecoins with existing banking frameworks, making them a more viable tool for both traditional and crypto-native institutions as regulatory experts observed.