SEC Eases Stablecoin Capital Rules With 2% Haircut Policy

• SEC allows 2% haircut on certain stablecoin holdings
• Broker-dealers gain clearer capital treatment for digital dollars
• Policy shift aligns stablecoins closer to money market funds

U.S. broker-dealers received fresh clarity this week as regulators moved to recalibrate how stablecoins are treated on balance sheets. The update signals a measured shift in how digital dollar instruments fit within traditional safeguards.

The U.S. Securities and Exchange Commission issued new staff guidance through its Division of Trading and Markets. The update allows broker-dealers to apply a 2% haircut to certain proprietary stablecoin positions. Consequently, firms may hold these assets under more practical capital treatment rules.

A haircut reflects the percentage reduction applied when valuing collateral for regulatory purposes. Previously, some brokers applied a 100% haircut to stablecoins. That approach effectively discouraged their use within regulated brokerage structures.

Under the revised position, SEC staff stated they would not object to a 2% haircut. This adjustment places qualifying stablecoins closer to money market fund treatment. Hence, broker-dealers may integrate them more easily into daily operations.

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SEC Commissioner Hester Peirce addressed the policy shift in a public statement. She said stablecoins remain essential for transactions conducted on blockchain rails. Moreover, she explained that their use could expand broker-dealer activity around tokenized securities and digital assets.

Beyond this guidance, the agency has increased its engagement with crypto markets. Over the past year, it launched a dedicated crypto task force. Additionally, it introduced Project Crypto to modernize oversight of digital asset activity.

Federal agencies are also implementing the GENIUS Act, which created a federal framework for stablecoin regulation. That broader legislative context frames the SEC’s recent action.

Stablecoins Edge Closer to Traditional Finance Infrastructure

Market observers quickly reacted to the updated haircut policy. According to fintech strategist Tonya Evans, some brokers previously imposed a 100% haircut on stablecoins. She explained that this treatment made holding them cost-prohibitive.

Evans noted that a 2% haircut aligns payment stablecoins with money market funds. Those funds often hold U.S. Treasuries and short-term government securities. Consequently, the comparison highlights similar underlying asset structures.

According to former Avalanche COO Luigi D’Onorio DeMeo, the policy removes a significant friction point. He stated that it lowers barriers to deeper integration with traditional finance rails. Additionally, he said the move could improve liquidity and settlement efficiency.

Together, these reactions suggest that the SEC’s recalibration may reshape operational decisions across brokerage firms.

Conclusion

The SEC’s decision to permit a 2% haircut on certain stablecoin positions narrows the regulatory gap between digital assets and traditional financial instruments. While the adjustment remains technical, its practical implications could influence how broker-dealers allocate capital and manage crypto-related exposure within regulated frameworks.

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