Overview
- On Feb. 19, the SEC’s Division of Trading and Markets said it would not object if broker-dealers treat payment stablecoins as having a ready market and apply a 2% haircut for net-capital purposes.
- The shift replaces a de facto 100% deduction many firms had been using, bringing qualifying stablecoins in line with money market fund treatment under Rule 15c3-1.
- The favorable treatment applies only to stablecoins that meet strict conditions such as 1:1 high‑quality liquid reserves, regular audited reporting, issuance by regulated entities, and clear redemption rights.
- Industry analysts say the change could free regulatory capital and enable functions like on‑chain settlement, liquidity provision, tokenized securities activity, and in‑kind ETP creations.
- The guidance is an informal staff FAQ tied to the GENIUS Act’s timeline and could change, as Commissioner Hester Peirce called past 100% haircuts punitive and invited input on potential rule amendments.