The Commodity Futures Trading Commission (CFTC) has broadened the criteria for payment stablecoins to encompass national trust banks, allowing them to issue fiat-pegged tokens. This move updates Staff Letter 25-40, initially released in December 2025, reflecting a significant shift in the regulatory landscape for stablecoins in the U.S.

National trust banks, which operate across all 50 states, typically provide custodial services and asset management rather than retail banking. The CFTC clarified that it did not intend to exclude these banks from the category of payment stablecoin issuers, as noted in the reissued letter.

This regulatory change comes in the wake of the GENIUS Act, signed into law in July 2025, which established a framework for U.S. dollar stablecoins. Under this act, only overcollateralized stablecoins are recognized, setting a clear standard for financial institutions looking to enter this market. The implications of this expansion are profound, as it opens the door for more financial institutions to engage in the stablecoin space, potentially increasing competition and innovation within the sector.