CFTC expands payment stablecoin criteria to include national trust banks

The Commodity Futures Trading Commission (CFTC) recently announced a significant expansion of the criteria used to evaluate the regulatory standing and oversight of payment stablecoins. This pivotal update explicitly includes stablecoins whose reserves are held by, or are issued by, federally chartered national trust banks (NTBs). This move is widely interpreted as an attempt by the CFTC to bridge the regulatory gap concerning digital asset payments and ensure institutional stability within the burgeoning stablecoin market.

Previously, regulatory efforts focused primarily on state-level licensing or required full banking charters for issuers seeking specific regulatory assurances. By formally recognizing NTBs, the CFTC is leveraging existing robust federal oversight structures—primarily those established by the Office of the Comptroller of the Currency (OCC). National trust banks are subject to stringent capital, fiduciary, and anti-money laundering (AML) requirements. The CFTC believes that granting specific regulatory preference to stablecoins backed by NTBs will significantly enhance consumer protection and reduce systemic risk, particularly regarding the ‘one-to-one’ collateral backing necessary for payment stablecoins.

This expansion provides immediate benefits, offering a clearer pathway for traditional financial institutions (TradFi) and large FinTech entities to enter the stablecoin issuance space under established regulatory frameworks. Market analysts suggest this action accelerates the institutional adoption of stablecoins for commercial payments and cross-border settlements, increasing market certainty. However, critics note that this shift may create new competitive barriers for smaller, non-bank crypto firms that may struggle to meet the strict collateral and custodian requirements associated with partnering with NTBs, potentially centralizing stablecoin control within established financial entities. The rule change is effective 60 days following its publication in the Federal Register.

Source: CFTC expands payment stablecoin criteria to include national trust banks