CFTC Updates Payment Stablecoin Definition to Include National Trust Bank Issuers

The Commodity Futures Trading Commission’s (CFTC) Market Participants Division (MPD) has announced a revision to CFTC Staff Letter 25-40, updating the definition of "payment stablecoin" within its regulatory relief framework. The revision explicitly establishes that a national trust bank may serve as a permitted issuer of payment stablecoins for the purposes of the division's no-action position. Originally issued on December 8, 2025, Staff Letter 25-40 provided a no-action position regarding specific regulatory requirements for futures commission merchants (FCMs). The relief applies to FCMs that accept non-securities digital assets, including payment stablecoins, as customer margin collateral and hold certain proprietary payment stablecoins in segregated customer accounts. Following the publication of the original letter, division staff recognized that payment stablecoins otherwise meeting the requisite criteria could be issued by national trust banks. Because the division did not intend to exclude national trust banks from the scope of permitted issuers, it determined to reissue the staff letter with an expanded definition. CFTC Chairman Michael S. Selig noted that the Office of the Comptroller of the Currency previously authorized national trust banks with the authority to custody and issue payment stablecoins. Selig stated that the amendment broadens the scope of eligible tokenized collateral to include stablecoins issued by these institutions in alignment with the CFTC's collateral framework and the GENIUS Act.