Key Takeaways

• CFTC expands the list of eligible stablecoin issuers, formally including national trust banks under Staff Letter 25-40. 

• National trust banks can now issue fiat-backed stablecoins under clear federal guidance across all 50 states. 

• Clear U.S. regulations may influence global stablecoin standards, promoting cross-border adoption and regulatory alignment.

The US Commodity Futures Trading Commission (CFTC) has taken another step toward clarifying the regulatory landscape for stablecoins. On Friday, the agency reissued Staff Letter 25-40, broadening the definition of eligible payment stablecoin issuers and officially bringing national trust banks into scope. 

These changes reflect growing recognition of nationally chartered trust banks as key players in digital asset markets. These institutions are authorized to operate across all 50 US states, positioning them to issue fiat-backed stablecoins under clearer federal regulatory guidance. As stated in the letter:

“The [Market Participants] Division did not intend to exclude national trust banks as issuers of payment stablecoins for purposes of Letter 25-40. Therefore, the division is reissuing the content of Letter 25-40, with an expanded definition of payment stablecoin.”

The update comes alongside the GENIUS legislation, signed by President Trump in July 2025, which established the first comprehensive federal framework for stablecoins in the U.S. The Act sets clear standards for issuing, backing, and redeeming dollar-backed digital tokens, requiring full 1:1 reserves held in high-quality assets such as cash deposits or short-term government securities. By doing so, it ensures stablecoins function as reliable payment tools rather than instruments for risky speculation, while providing regulators and market participants with clear guidance for compliance and oversight.

Adding to this, the FDIC proposed in December 2025 that commercial banks issue stablecoins through subsidiaries under its supervision. Both the parent bank and subsidiary must meet GENIUS Act standards, including clear redemption rules, adequate collateral, and strong financial health. Combined with CFTC updates and the GENIUS Act, this provides a clear roadmap for stablecoin regulation.

SEC Focuses on Stablecoin Transparency and Safety

Building on this, SEC Chair Paul Atkins highlighted that the agency has already begun focusing on stablecoins, ensuring they are properly backed and transparently managed. He noted that Jonathan Gould is developing guidance for stablecoin oversight to present to the SEC board. The SEC is working to establish clear rules for stablecoins, aiming to strengthen market confidence in them as safe and reliable financial instruments, while building on decades of experience in financial regulation and enforcement. 

Atkins said the move is part of a broader push to clarify the rules for digital assets, giving investors and businesses a clear picture of what’s expected when issuing and managing stablecoins. The SEC is emphasizing strong reserves, transparency, and operational safeguards to reduce risks and prevent instability in the fast-growing stablecoin market. Analysts say these steps could lay the groundwork for wider adoption of stablecoins in everyday payments and financial services.

Impact on the Banking Sector

• National Trust Banks Recognized: The CFTC’s updated Staff Letter 25-40 formally brings national trust banks into the scope of stablecoin issuance, recognizing them as key participants in digital asset markets. 

• Expanded Operations: Trust banks, authorized to operate in all 50 states, can now issue fiat-backed stablecoins under clearer federal guidance, creating potential new banking services and revenue streams. 

• Reduced Risk: The combined framework of the CFTC update and the GENIUS Act ensures that stablecoins are fully backed by high-quality assets, reducing operational and financial risks for banks. 

• Encouraging Adoption: Greater regulatory clarity is expected to encourage more traditional financial institutions to explore stablecoin offerings and integrate them into payments, lending, and treasury operations.

Global Considerations

• International Influence: U.S. regulatory clarity on stablecoins, through the CFTC updates and the GENIUS Act, may influence international digital asset standards. 

• Cross-Border Adoption: Clear rules around backing, reserves, and oversight could make the U.S.-issued stablecoins more attractive for cross-border transactions and international investors. 

• A Global Benchmark: By providing a federal framework, the U.S. sets a benchmark that other countries could follow, potentially harmonizing global standards for stablecoin issuance. 

• Regulatory Alignment: This alignment may encourage greater cooperation among regulators worldwide, reducing uncertainty in the digital asset market and supporting the growth of a secure, regulated stablecoin ecosystem.

Why This Matters for Stablecoins

Expanding stablecoin issuance to national trust banks broadens the pool of potential issuers and integrates traditional custody and settlement functions with digital assets in a regulated, auditable environment. This move could increase liquidity, create new institutional on-ramps, and accelerate the adoption of digital-dollar solutions for payments, payroll, and cross-border transactions, provided tokens remain fully backed and subject to robust oversight.

The reissuance of CFTC Staff Letter 25-40, combined with the GENIUS Act and the FDIC’s proposed framework, reinforces trust and stability by requiring 1:1 backing, excluding algorithmic models, and introducing subsidiary-based supervision for banks. These measures reduce counterparty risk, establish clear operational and governance standards, and create a predictable regulatory environment. For market participants, this clarity supports broader engagement with stablecoins while ensuring that new products operate safely and transparently within the U.S. financial system.

Final Thoughts

The CFTC’s reissuance of Staff Letter 25-40, together with the GENIUS Act and the FDIC’s proposed framework, marks an important step in shaping the U.S. stablecoin market. By officially allowing national trust banks to issue digital dollars, regulators are opening the door for broader adoption while providing clear guidance for banks to safely integrate stablecoins into payments, treasury operations, and cross-border transactions.

The rules prioritize transparency and security, requiring fully backed reserves, strong governance, and subsidiary-based oversight. This approach reduces risk, boosts market confidence, and sets a federal benchmark that could influence global standards, positioning U.S. stablecoins as reliable, regulated instruments for the digital economy.

Frequently Asked Questions

What did the CFTC announce about stablecoin issuers?

The CFTC reissued Staff Letter 25-40, expanding the definition of eligible payment stablecoin issuers to include national trust banks.

Which banks are now allowed to issue stablecoins?

Nationally chartered trust banks authorized to operate across all 50 states can now issue fiat-backed stablecoins under federal guidance.

What are the benefits of these regulatory updates for stablecoin users?

The framework ensures transparency, security, and fully backed reserves, reducing risks and boosting confidence for consumers and businesses.

Could this influence global stablecoin standards?

Yes, U.S. regulations provide a federal benchmark that may shape international standards and encourage cross-border adoption of stablecoins.