CFTC Expands Payment Stablecoin Definition for Trust Banks

• CFTC revised Staff Letter 25-40 to explicitly include national trust banks as permitted issuers of payment stablecoins.
• Futures commission merchants can now accept bank-issued stablecoins as margin collateral under the no-action framework.
• The update aligns with OCC policy and the GENIUS Act as debate over broader stablecoin regulation continues.

The U.S. Commodity Futures Trading Commission on Dec. 8, 2025, revised its guidance to widen who can issue payment stablecoins. The update came from the CFTC’s Market Participants Division through a reissued Staff Letter 25-40. The change clarifies that national trust banks may issue stablecoins used as margin collateral by futures brokers.

What Changed in CFTC Staff Letter 25-40

According to the CFTC, the division reissued Staff Letter 25-40 with a limited but specific revision. The updated definition of “payment stablecoin” now explicitly includes national trust banks as permitted issuers. Previously, the letter did not clearly state this point.

The original no-action letter, released on Dec. 8, 2025, allowed futures commission merchants to accept certain non-security digital assets as margin collateral. These assets included payment stablecoins held in segregated customer accounts. After publication, staff learned that some qualifying stablecoins were issued by national trust banks.

However, the original language did not reflect that reality. As a result, the division said the omission was unintentional. It therefore reissued the letter to ensure the definition matched existing issuance structures already operating under federal oversight.

Role of National Trust Banks and Regulatory Context

Michael S. Selig, chairman of the CFTC, said the revision aligns with policies established during President Donald Trump’s first term. At that time, the Office of the Comptroller of the Currency authorized national trust banks to custody and issue payment stablecoins.

Notably, the revised guidance allows futures brokers to accept bank-issued stablecoins as margin collateral. This was previously unclear under the no-action framework. Selig said the change fits within the CFTC’s eligible collateral framework and the recently enacted GENIUS Act.

Meanwhile, debate continues in Washington over stablecoin oversight. Lawmakers are weighing the CLARITY Act, which faces resistance from both banking groups and parts of the crypto industry. The GENIUS Act, by contrast, supports integrating stablecoins into existing financial systems.

Market Context and Stablecoin Activity

Retail sentiment around USDC remained bearish. Online discussion also declined from normal to low levels during the past day. These developments coincide with regulatory adjustments that now formally recognize national trust banks as stablecoin issuers.