U.S. District Judge David Hittner announced his ruling this afternoon after a nearly three-day competency hearing in Houston federal court.
Stanford is accused of bilking investors out of $7 billion in a massive Ponzi scheme. His trial is set for January 23.
Stanford had been declared incompetent early this year due to an anti-anxiety drug addiction he developed while jailed in Houston and was treated for eight months at a federal prison hospital in North Carolina.
Prison hospital officials said Stanford is competent for trial. However, medical experts who testified for Stanford said a brain injury the financier suffered in a jail fight has left him unable to aid his own defense.