CFTC Expands Stablecoin Rules Allowing National Trust Banks to Issue Digital Dollars

Commodity Futures Trading Commission Updates Stablecoin Criteria to Include National Trust Banks

The US Commodity Futures Trading Commission has updated its internal guidance on stablecoins, formally clarifying that national trust banks are permitted to issue payment stablecoins under federal oversight. The move expands the pool of regulated stablecoin issuers in the United States and signals a more inclusive regulatory approach toward traditional financial institutions entering the digital asset space.

The clarification came through the reissuance of Staff Letter 25-40, which outlines criteria for stablecoins used in derivatives and other regulated markets. According to the CFTC, national trust banks were never intended to be excluded from the framework, despite uncertainty that emerged following earlier interpretations of the guidance.

The update was highlighted by Coin Bureau on X and later confirmed through regulatory documentation reviewed by industry observers. Following verification, hokanews cited the development as part of its ongoing coverage of US crypto regulation and stablecoin policy.

Source: XPost

What the Updated Guidance Means

Staff Letter 25-40 provides guidance on the types of stablecoins that may be considered acceptable collateral or settlement instruments within CFTC-regulated markets. By explicitly including national trust banks as eligible issuers, the commission has clarified a point that had caused confusion among financial institutions and crypto firms alike.

National trust banks operate under federal or state charters and are subject to strict supervisory standards. Their inclusion effectively broadens the category of regulated entities allowed to issue payment stablecoins tied to the US dollar.

Regulatory analysts say the clarification removes a key ambiguity that may have discouraged traditional institutions from participating in the stablecoin market.

Why National Trust Banks Matter

National trust banks play a unique role in the US financial system, often specializing in custody, fiduciary services, and asset administration rather than traditional lending. In recent years, several such institutions have explored blockchain-based settlement, tokenized assets, and digital payment infrastructure.

By allowing national trust banks to issue payment stablecoins, the CFTC opens the door for deeper integration between traditional finance and blockchain-based payment systems.

Supporters argue that trust banks could bring stronger governance, transparency, and compliance standards to the stablecoin ecosystem. Critics caution that expanded institutional participation could reshape the market in ways that favor incumbents.

Clarifying an Unintended Exclusion

According to the CFTC, earlier interpretations of Staff Letter 25-40 may have led some market participants to believe that only insured depository institutions were eligible stablecoin issuers. The reissued guidance emphasizes that this was never the intent.

The clarification reflects a broader regulatory effort to ensure that guidance keeps pace with evolving financial structures, particularly as stablecoins increasingly intersect with regulated markets.

Industry lawyers note that such clarifications are common as agencies refine their approach to emerging technologies.

Coin Bureau Confirmation and Media Reporting

The update gained wider attention after Coin Bureau highlighted the reissued guidance on X, prompting discussion among crypto policy analysts and banking professionals. After confirming the context of the update, hokanews cited the development while framing it as a regulatory clarification rather than a fundamental policy shift.

Mainstream coverage has similarly emphasized continuity, noting that the CFTC did not create a new rule but clarified existing intent.

Implications for the Stablecoin Market

Stablecoins have become a critical component of the digital asset ecosystem, facilitating trading, payments, and cross-border transfers. However, regulatory uncertainty has long surrounded who may issue them and under what conditions.

The CFTC’s clarification may encourage more regulated institutions to explore stablecoin issuance, potentially increasing competition with existing issuers and reshaping market dynamics.

At the same time, it underscores the importance of regulatory compliance as stablecoins become more embedded in the financial system.

Interaction With Broader US Crypto Policy

The update comes amid ongoing efforts by US lawmakers and regulators to define a comprehensive framework for digital assets. Stablecoins, in particular, have drawn attention due to their scale and potential impact on payments and financial stability.

While the CFTC oversees derivatives markets, its guidance often influences broader industry practices. Observers say the inclusion of national trust banks aligns with parallel discussions involving banking regulators and Congress.

Industry Reaction

Reaction within the crypto and banking sectors has been cautiously optimistic. Some market participants view the clarification as a positive step toward regulatory certainty, while others stress the need for coordination among agencies to avoid overlapping or conflicting requirements.

Analysts note that regulatory clarity, even when incremental, can have a meaningful impact on investment and innovation decisions.

What Comes Next

The reissued Staff Letter does not, by itself, authorize any specific institution to issue a stablecoin. Eligible entities must still meet applicable regulatory and compliance standards.

However, the clarification sets the stage for broader participation by regulated banks as stablecoin policy continues to evolve.

hokanews will continue to monitor regulatory developments and provide updates as verified information becomes available through official channels.

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Writer @Ethan
Ethan Collins is a passionate crypto journalist and blockchain enthusiast, always on the hunt for the latest trends shaking up the digital finance world. With a knack for turning complex blockchain developments into engaging, easy-to-understand stories, he keeps readers ahead of the curve in the fast-paced crypto universe. Whether it’s Bitcoin, Ethereum, or emerging altcoins, Ethan dives deep into the markets to uncover insights, rumors, and opportunities that matter to crypto fans everywhere.

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