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SEC Staff Allows 2% Capital Haircut for Qualifying Stablecoins Under Broker-Dealer Rule

The staff FAQ ties eligibility to GENIUS Act–style reserve and redemption standards, offering near-term relief while leaving formal rulemaking for later.

Overview

  • On Feb. 19, the SEC Division of Trading and Markets said it would not object if broker-dealers treat qualifying payment stablecoins as having a ready market and apply a 2% haircut under Rule 15c3-1.
  • The shift replaces a de facto 100% deduction, allowing $100 of eligible tokens to count as $98 toward net capital and aligning treatment with money market funds, as noted by Commissioner Hester Peirce.
  • Only payment stablecoins meeting strict criteria—1:1 high‑quality liquid reserves, regular audited reporting and monthly attestations, approved issuer types, and enforceable redemption rights—qualify for the favorable treatment.
  • The guidance is informal staff policy rather than a Commission rule, so it can be revised, and Peirce invited input on potential amendments to the net capital rule to formally account for payment stablecoins.
  • Market participants expect the capital relief to free balance‑sheet capacity for settlement, collateral, and tokenized‑securities workflows, though not all widely used stablecoins may meet the stated eligibility conditions.