SEC Eases Stablecoin Capital Rules for Brokers
The U.S. Securities and Exchange Commission has issued new guidance that reduces the capital haircut for broker-dealers holding payment stablecoins to just 2%. The move, down from previously punitive levels, is expected to significantly increase institutional engagement with digital assets. This regulatory shift positions stablecoins as near-cash equivalents on Wall Street balance sheets, potentially unlocking new liquidity for both DeFi and traditional finance.
- Before this guidance, broker-dealers often applied a precautionary 100% haircut to stablecoin holdings due to regulatory uncertainty, meaning the assets counted as zero towards their net capital requirements. - The policy shift was announced by the SEC's Division of Trading and Markets through an update to a staff-level "Frequently Asked Questions" document, rather than through a formal rulemaking process. - SEC Commissioner Hester Peirce publicly supported the change, stating that a 100% haircut was "unnecessarily punitive" given the high-quality reserve assets that back payment stablecoins. - The 2% haircut aligns the regulatory capital treatment of qualifying stablecoins with that of money market funds, which hold similar low-risk assets like U.S. Treasuries and cash. - To qualify for the lower haircut, a stablecoin must be backed 1:1 by high-quality reserves, and its issuer must be a regulated entity that provides monthly attestations from a registered public accounting firm. - This guidance builds on the "Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act," which became law in July 2025 and established a federal regulatory framework for payment stablecoins. - The new guidance is seen as a reversal of the SEC's previous restrictive stance, notably marked by the now-rescinded Staff Accounting Bulletin 121 (SAB 121), which had created significant accounting barriers for institutions holding crypto-assets. - Following the staff guidance, Commissioner Peirce has invited public and industry feedback on potential formal amendments to the Broker-Dealer Net Capital Rule (Rule 15c3-1) itself, signaling a move toward a more permanent regulatory structure.
