SEC reduces stablecoin capital haircut for broker-dealers

The SEC now allows broker-dealers to apply a 2% capital haircut to certain stablecoins, easing capital requirements and supporting stablecoin adoption in traditional finance.

The U.S. Securities and Exchange Commission (SEC) has introduced a major regulatory update for stablecoins. Broker-dealers can now apply a 2% capital haircut to proprietary holdings of qualifying payment stablecoins, a dramatic reduction from the previous 100% haircut. This shift effectively brings stablecoins in line with money market funds and short-term Treasuries in terms of regulatory treatment. The change reflects growing confidence in fully reserved, regulated, and audited stablecoin structures. It is expected to ease operational and capital requirements for both broker-dealers and stablecoin issuers, making stablecoins more practical for liquidity management. Quietly implemented through updated SEC guidance and FAQs, this move is widely seen as a significant step toward integrating digital assets into the regulated financial system and encouraging broader adoption within traditional finance.