CFTC expands payment stablecoin criteria to include national trust banks
Summary
The Commodity Futures Trading Commission (CFTC) has updated a prior staff letter to align with the regulations outlined in the GENIUS stablecoin framework, signaling a significant step in the evolving landscape of cryptocurrency regulation.
Key Insights
What is a payment stablecoin and why does it matter for futures trading?
A payment stablecoin is a digital asset backed by high-quality liquid assets on a 1:1 basis, designed to maintain a stable value for payment purposes. Under the CFTC's updated rules, futures commission merchants (brokers) can now accept these stablecoins as margin collateral—the cash or assets customers must deposit to secure their trading positions. This expands the types of assets available for margin requirements, potentially increasing liquidity in derivatives markets and making it easier for traders to access futures trading without relying solely on traditional cash collateral.
What are national trust banks and why did the CFTC need to clarify their role in stablecoin issuance?
National trust banks are federally chartered financial institutions that can hold and issue stablecoins under the GENIUS Act framework. The CFTC's original December 2025 letter inadvertently excluded these banks as permitted issuers, creating a two-tiered system that only recognized state-regulated money transmitters and trust companies. The February 2026 revision corrected this oversight by explicitly authorizing national trust banks—including five new cryptocurrency-focused charters approved by the Office of the Comptroller of the Currency in December 2025—to issue stablecoins that futures brokers can accept as margin collateral. This change ensures parity between bank-issued and non-bank stablecoins in the derivatives market.