URGENT UPDATE: The Commodity Futures Trading Commission (CFTC) has just expanded its criteria for payment stablecoins, now including national trust banks as eligible issuers. This critical development was announced in a revised staff letter released on December 8, 2025, signaling a significant shift in the regulatory landscape for stablecoins.
The CFTC’s new directive allows these specialized banks, which primarily offer custodial, asset management, and executor services, to issue fiat-pegged tokens. Unlike traditional banks, national trust banks do not provide retail banking services like lending or checking accounts. This move opens the door for these institutions to participate more fully in the stablecoin market, which has been gaining traction in the financial ecosystem.
According to the CFTC’s revised guidance, the division aims to clarify that national trust banks were not previously excluded from the stablecoin framework outlined in Staff Letter 25-40. The letter emphasizes that these banks can issue payment stablecoins through a subsidiary, subject to oversight by the Federal Deposit Insurance Corporation (FDIC). This oversight will ensure that both the parent bank and its subsidiaries comply with the stringent requirements set forth by the GENIUS Act.
The requirements for issuing stablecoins include robust redemption policies, adequate backing collateral in cash deposits and short-term government securities, and evaluations of the financial health of both the bank and its subsidiary. Notably, algorithmic stablecoins and synthetic dollars, which rely on complex software and trading strategies to maintain their dollar pegs, are excluded from this regulatory framework.
This urgent update from the CFTC comes at a crucial time as the cryptocurrency landscape continues to evolve, and regulatory clarity becomes increasingly vital for market participants. The decision is expected to have wide-reaching implications for the stablecoin market and may encourage more financial institutions to explore opportunities in digital currencies.
With the financial world watching closely, this development could reshape how stablecoins are viewed and utilized by consumers and businesses alike. As the CFTC continues to refine its approach to digital assets, stakeholders are advised to stay informed on how these changes may impact their operations and investments.
For more details, check the full announcement from the CFTC and stay tuned for ongoing updates on this rapidly developing story.
