SEC Eases Stablecoin Capital Rules – Brokers Gain New Liquidity Boost

Key Takeaways

• SEC allows a 2% capital haircut for qualifying payment stablecoins
• Previous treatment often applied a 100% haircut
• Only stablecoins meeting strict reserve, transparency, and regulatory standards qualify
• Potential liquidity boost for major broker-dealers
• Could accelerate institutional adoption of tokenized securities and digital assets

In updated guidance from the Division of Trading and Markets, the regulator signaled it would allow firms to apply a far lighter capital charge to qualifying “payment stablecoins.”

The move could free up billions in regulatory capital and reshape how traditional financial institutions interact with dollar-backed digital assets.

The 2% Haircut Rule Changes the Game

Under the updated FAQ, broker-dealers calculating net capital under Exchange Act Rule 15c3-1 may apply just a 2% haircut to proprietary positions in eligible payment stablecoins.

Previously, many firms applied a 100% haircut – effectively treating stablecoin holdings as worthless for capital purposes. That conservative approach severely limited their practical use on broker balance sheets.

With the new framework, firms can count 98% of a qualifying stablecoin’s market value toward working capital. The 2% rate mirrors the treatment of money market funds, which typically hold low-risk assets such as short-term U.S. Treasuries.

Strict Criteria for Eligibility

Not all stablecoins qualify. The SEC staff outlined specific “ready market” conditions that must be met.

• To receive the favorable 2% treatment, a stablecoin must:Maintain 1:1 backing with high-quality liquid assets such as cash and short-term Treasuries
• Provide regular audited reserve reports and monthly attestations
• Be issued by a state-regulated money transmitter, state trust company, or national trust bank
• Offer clear and enforceable redemption rights to holders

Industry analysis suggests that USDC could meet these requirements, while Tether’s USDT may not currently satisfy all of the stated conditions.

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Liquidity Surge for Wall Street

The capital relief could materially change how major broker-dealers approach stablecoins. Firms such as Robinhood and Goldman Sachs may now deploy stablecoin holdings far more efficiently, potentially unlocking significant liquidity across trading desks.

Commissioner Hester Peirce indicated that the updated treatment may also support broader engagement with tokenized securities and other blockchain-based financial instruments. Lower capital friction makes it more feasible for traditional brokers to expand into digital asset infrastructure without penalizing their balance sheets.

Regulatory Backdrop

The guidance arrives shortly after the passage of the GENIUS Act, signaling a broader shift in Washington toward structured stablecoin oversight rather than outright restriction.

Taken together, the policy change suggests regulators are beginning to differentiate between fully backed, transparent payment stablecoins and higher-risk crypto assets. If adoption accelerates, the 2% haircut framework could become a cornerstone of how digital dollars integrate into mainstream brokerage operations.

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