Update on Payment Stablecoins by the CFTC
The Commodity Futures Trading Commission (CFTC) has updated its previous guidance regarding payment stablecoins, broadening the parameters set by the recently implemented GENIUS Act. As of February 6, the CFTC’s Market Participants Division recognized national trust banks as qualifying issuers of payment stablecoins, a notable inclusion that was absent in the original advice. This revision comes after the CFTC had previously established a no-action policy for futures commission merchants overseeing non-securities digital assets, which encompassed payment stablecoins utilized as customer margin collateral.
Significance of National Trust Banks
CFTC Chairman Michael Selig emphasized the significance of national trust banks, pointing out that under President Trump’s administration, these banks were chartered with the capability to custody and issue payment stablecoins. “These national trust banks are essential components of the payment stablecoin landscape. It is encouraging that the CFTC’s staff has broadened its guidance to acknowledge payment stablecoins issued by these institutions as eligible tokenized collateral. With the new framework brought about by the GENIUS Act, the United States positions itself as a pioneer in the realm of payment stablecoin innovation,” he remarked.
FDIC’s Proposal for Banks to Issue Stablecoins
In a related move, the U.S. Federal Deposit Insurance Corporation (FDIC) announced in December 2025 a proposal allowing banks to issue stablecoins in alignment with the GENIUS Act. This initiative permits banks to generate these digital assets via subsidiaries monitored by the FDIC, ensuring compliance through a dual regulatory examination of both the main banking institution and its offshoot.
Framework for Stablecoin Issuance
The issued framework emphasizes the importance of stringent criteria for stablecoin issuance, mandating that tokens are fully backed by secure assets, such as cash or short-term U.S. Treasury securities, and guaranteeing redemption rights for token holders. Furthermore, regulatory evaluations will focus on the financial stability and risk management practices of both the bank and its subsidiary to mitigate systemic risks and facilitate the secure functioning of stablecoins within the financial sector at large.
Conclusion
This strategic revision represents a significant evolution in the U.S. regulatory landscape for digital assets, highlighting the increasing involvement of conventional financial institutions in the stablecoin sector. By officially recognizing national trust banks as payment stablecoin issuers, regulators aim to enhance market oversight and transparency, which in turn could foster responsible innovation and encourage broader acceptance of compliant stablecoins within institutional and corporate circles.
