CFTC clears path for national trust banks to issue payment stablecoins as collateral

• The CFTC reissued Staff Letter 26-05 to include national trust banks as eligible issuers of payment stablecoins.
• The guidance allows Futures Commission Merchants (FCMs) to accept these tokens as margin collateral for customer accounts.
• The update aligns with the GENIUS Act of 2025, providing federal clarity for dollar-pegged digital assets.
• Industry leaders like Circle and Ripple, which recently secured national trust charters, stand to benefit from the expanded criteria.

The Commodity Futures Trading Commission (CFTC) has officially cleared the way for national trust banks to issue “payment stablecoins” for use as collateral in regulated crypto markets. In a move that rectifies a previous regulatory oversight, the agency reissued its staff guidance to ensure federally chartered institutions can participate alongside state-regulated entities in the institutional derivatives space.

The updated guidance, released as Staff Letter 26-05, amends a previous December 2025 letter that had inadvertently excluded national trust banks from the definition of permitted issuers. By expanding this scope, the CFTC now permits Futures Commission Merchants (FCMs) to accept stablecoins issued by these banks to satisfy margin requirements for non-securities digital assets.

The shift is a direct response to the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which was signed into law in July 2025. The legislation established a comprehensive federal framework for dollar-pegged tokens, requiring them to be backed 1:1 by high-quality liquid assets like short-term Treasuries and cash deposits. The CFTC’s latest move ensures that the “payment stablecoin” designation is applied consistently across both state and federal banking charters.

“National trust banks play an important role in the payment stablecoin ecosystem,” said CFTC Chairman Michael S. Selig in a statement. “I am pleased that the CFTC staff is amending its previously issued no-action letter to expand the list of eligible tokenized collateral to include payment stablecoins issued by these institutions. With the enactment of the GENIUS Act, America is the global leader in payment stablecoin innovation.”

The decision is expected to benefit several major crypto firms that have recently moved toward federal oversight. In late 2025, the Office of the Comptroller of the Currency (OCC) approved national trust charters for firms including Circle and Ripple. Previously, only state-regulated issuers like Paxos were widely recognized for these specific collateral functions under CFTC rules.

Under the new rules, these stablecoins must adhere to strict KYC and AML protocols, and issuers are prohibited from rehypothecating reserve assets. For institutional traders, the ability to use bank-issued stablecoins as margin allows for 24/7 liquidity management and significantly reduces the settlement friction associated with traditional wire transfers.

Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.