CFTC Permits National Trust Banks to Issue Stablecoins Again

The US Commodity Futures Trading Commission (CFTC) has clarified its stance on stablecoin issuance, allowing national trust banks to participate. This move, aligned with the GENIUS Act, could significantly impact the digital asset landscape by expanding the pool of stablecoin issuers.

What Changed with CFTC’s New Guidance?

The CFTC reissued a staff letter originally from December 2025, now including national trust banks as eligible issuers of payment stablecoins. This update clarifies previous guidance, ensuring national trust banks were not unintentionally excluded. These banks, federally chartered and operational across all states, focus on custody and fiduciary services rather than traditional banking operations.

Why This Matters to the Crypto Market

This development is significant for the digital asset sector. National trust banks, already key players in custody and settlement services, can now issue stablecoins. This aligns stablecoin issuance with entities structured around asset safeguarding rather than credit extension, providing a more secure foundation for stablecoin models reliant on full backing.

Investor Takeaway

Regulatory Context and the GENIUS Act

Following the GENIUS Act, which established a federal framework for stablecoins, this move by the CFTC aligns with regulatory standards. The law mandates fully backed stablecoins, excluding algorithmic and synthetic models. By incorporating trust banks, the CFTC ensures adherence to strict backing and oversight rules.

Broader Regulatory Trends

The CFTC’s decision is part of a broader regulatory trend. The Federal Deposit Insurance Corporation (FDIC) has proposed allowing commercial banks to issue stablecoins through regulated subsidiaries. This reflects a shift towards a stablecoin market grounded in regulated institutions, moving away from offshore and experimental designs.

Investor Takeaway

The CFTC’s decision to include national trust banks in stablecoin issuance broadens the regulatory framework, encouraging more institutional participation while maintaining strict standards. This could lead to a more stable and compliant stablecoin market in the US.