CFTC Expands Stablecoin Rules Allowing Trust Banks to Issue Dollar Pegged Tokens

Commodity Futures Trading Commission Expands Stablecoin Rules to Allow National Trust Banks Under GENIUS Act Framework

The US Commodity Futures Trading Commission has expanded its stablecoin guidance to allow national trust banks to issue dollar-pegged digital tokens, a move that significantly broadens the scope of regulated stablecoin issuers in the United States under the framework of the GENIUS Act.

The update marks one of the most consequential regulatory clarifications for the US stablecoin market to date, reinforcing the role of federally regulated financial institutions in the evolving digital payments ecosystem. The development was first highlighted by Cointelegraph on X and later confirmed through regulatory guidance reviewed by industry analysts. Following verification, hokanews cited the update as part of its ongoing coverage of US crypto regulation and financial policy.

Source: XPost

What the Rule Expansion Changes

Under the expanded guidance, national trust banks are now explicitly permitted to issue dollar-pegged stablecoins, provided they meet existing regulatory, compliance, and reserve requirements. The clarification removes uncertainty that had previously limited participation by trust banks, which play a central role in custody, fiduciary services, and asset administration.

The GENIUS Act framework, which aims to establish clear boundaries for digital asset issuance and oversight, provides the legal foundation for the change. Regulators emphasized that national trust banks were not meant to be excluded under prior interpretations, but ambiguity in earlier guidance prompted the need for formal clarification.

Legal experts say the update offers long-sought regulatory certainty to institutions that had been preparing stablecoin infrastructure but hesitated due to unclear eligibility rules.

Why National Trust Banks Matter

National trust banks differ from traditional commercial banks in that they typically do not engage in lending. Instead, they focus on custody, asset servicing, and fiduciary responsibilities, making them well positioned to manage reserve-backed digital assets.

By including trust banks, regulators open the door for a new class of stablecoin issuers that already operate under stringent oversight. Supporters argue this could strengthen consumer protection, enhance transparency, and improve reserve management practices across the stablecoin market.

Critics, however, warn that expanding issuance authority to traditional financial institutions could reshape the competitive landscape, potentially favoring large incumbents over smaller fintech and crypto-native firms.

Cointelegraph Confirmation and Media Reporting

The regulatory update gained traction after Cointelegraph reported the expansion on X, sparking debate across the crypto and banking sectors. After confirming the regulatory context, hokanews cited the development while framing it as a structural clarification rather than a departure from existing regulatory intent.

Mainstream media coverage has largely emphasized the implications for institutional participation and regulatory clarity rather than immediate market impact.

Implications for the Stablecoin Market

Stablecoins have become a cornerstone of digital asset trading, payments, and settlement, with dollar-pegged tokens accounting for the majority of on-chain transaction volume. However, questions around issuer eligibility and oversight have long been viewed as a risk to broader adoption.

By expanding eligibility to national trust banks, the CFTC’s guidance may accelerate institutional adoption and integration of stablecoins into traditional financial infrastructure.

Analysts say the move could also intensify competition among issuers, driving improvements in transparency, liquidity, and consumer safeguards.

Relationship With Broader US Crypto Policy

The update aligns with broader efforts by US lawmakers and regulators to bring digital assets under clearer regulatory frameworks without stifling innovation. While Congress continues to debate comprehensive crypto legislation, agency-level guidance such as this plays a critical role in shaping market behavior.

The GENIUS Act framework, though still evolving, reflects a policy approach focused on inclusion of regulated entities rather than outright restriction.

Industry Reaction

Reaction from the crypto industry has been mixed but largely constructive. Some market participants welcomed the clarity, arguing it reduces regulatory risk and encourages responsible innovation. Others expressed concern that traditional financial institutions could dominate stablecoin issuance at the expense of decentralized alternatives.

Banking professionals, meanwhile, view the clarification as validation of long-term investment in blockchain-based payment systems.

What Comes Next

The expanded guidance does not automatically authorize any specific institution to issue a stablecoin. Eligible trust banks must still comply with applicable capital, reserve, disclosure, and operational requirements.

Future developments will depend on how quickly institutions move to launch products and how regulators coordinate oversight across agencies.

For now, the move represents a significant step toward integrating stablecoins into the regulated US financial system.

hokanews will continue to monitor regulatory developments and provide updates as verified information becomes available.

hokanews.com – Not Just Crypto News. It’s Crypto Culture.

Writer @Ethan
Ethan Collins is a passionate crypto journalist and blockchain enthusiast, always on the hunt for the latest trends shaking up the digital finance world. With a knack for turning complex blockchain developments into engaging, easy-to-understand stories, he keeps readers ahead of the curve in the fast-paced crypto universe. Whether it’s Bitcoin, Ethereum, or emerging altcoins, Ethan dives deep into the markets to uncover insights, rumors, and opportunities that matter to crypto fans everywhere.

Disclaimer:

The articles on HOKANEWS are here to keep you updated on the latest buzz in crypto, tech, and beyond—but they’re not financial advice. We’re sharing info, trends, and insights, not telling you to buy, sell, or invest. Always do your own homework before making any money moves.

HOKANEWS isn’t responsible for any losses, gains, or chaos that might happen if you act on what you read here. Investment decisions should come from your own research—and, ideally, guidance from a qualified financial advisor. Remember: crypto and tech move fast, info changes in a blink, and while we aim for accuracy, we can’t promise it’s 100% complete or up-to-date.