U.S. Regulators Expand Stablecoin Definition to Include National Trust Banks

U.S. regulators have taken significant steps to legitimize stablecoins at the federal level, broadening their approved uses and enhancing the role of national trust banks as payment tokens gain traction in mainstream financial infrastructure. On February 6, the Commodity Futures Trading Commission CFTC announced that it had reissued CFTC Staff Letter 25-40, revising the definition of payment stablecoins to allow national trust banks to qualify as permitted issuers.
CFTC Chairman Michael S. Selig stated:
Today, CFTC staff is expanding the list of eligible tokenized collateral to include stablecoins issued by national trust banks. With the enactment of the GENIUS Act and the CFTC s new eligible collateral framework, America is the global leader in stablecoin innovation.
This modification addresses an oversight in the original definition, which accidentally excluded payment stablecoins issued by national trust banks despite them meeting all other criteria.
Selig further elaborated on the regulatory context, saying,
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.
He expressed satisfaction that the CFTC staff is amending its previous no-action letter to include these institutions.
The updated definition aims to align the guidance with existing federal charters, reduce uncertainty for registered intermediaries, and support consistent collateral treatment across regulated derivatives markets. It preserves all substantive conditions and limitations of the original relief while reinforcing the role of federally chartered trust banks in the evolving stablecoin landscape.