The post Stablecoins Gain Federal Backing as CFTC Expands Issuer List appeared on BitcoinEthereumNews.com.

TLDR: The CFTC update formally includes national trust banks as approved issuers of payment stablecoins for derivatives margin use. Staff Letter 25-40 still requires full reserve backing and strict redemption rules for qualifying payment stablecoins. The guidance aligns federal trust banks with existing state-regulated stablecoin issuers like Circle and Paxos. Combined with the GENIUS Act, the rule signals tighter integration of stablecoins into U.S. financial markets.   The U.S. Commodity Futures Trading Commission has expanded its regulatory guidance on payment stablecoins used in derivatives markets. The change allows national trust banks to qualify as approved issuers under an existing no-action framework.  The update removes a key limitation that had excluded federally chartered trust institutions. It signals deeper integration of stablecoins into regulated financial infrastructure. CFTC Updates Definition of Payment Stablecoins The CFTC’s Market Participants Division reissued Staff Letter 25-40 with a revised definition of payment stablecoins. The clarification confirms that national trust banks qualify as permitted issuers. The original letter, released in December 2025, granted no-action relief to futures commission merchants. It allowed them to accept qualifying payment stablecoins as customer margin collateral. The guidance also permits firms to hold proprietary stablecoins in segregated customer accounts. These holdings count toward regulatory calculations under strict risk controls. According to a CFTC press release, staff later realized the original wording unintentionally excluded national trust banks. The revision corrects that oversight and aligns them with state-regulated issuers such as Circle and Paxos. The framework requires stablecoins to maintain full reserve backing and clear redemption rights. It also mandates operational safeguards and compliance with existing risk management standards. Social commentary from crypto analysts described the update as a major step for stablecoin adoption in regulated derivatives trading. The reaction focused on its impact on market structure rather than token prices. GENIUS Act and FDIC…

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Filed under: News - @ February 8, 2026 5:19 am