SEC Issues 2% Stablecoin Capital Guidance, Softening Regulatory Pressure
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The US SEC now permits broker-dealers to apply a 2% haircut on payment stablecoins, allowing them to use 98% of a stablecoin's value for regulatory capital. This change is a shift from the previous rule which imposed a 100% haircut, thereby enhancing the potential for stablecoin adoption in broker-dealer operations.
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- The US SEC now allows broker-dealers to apply a 2% haircut on payment stablecoins.
- SEC said the guidance only reflects staff views and has no legal force
- The clarification opens the door for broader use of stablecoins in broker-dealer operations
The US Securities and Exchange Commission issued new guidance on Feb. 19 through its Division of Trading and Markets. The update explains how broker-dealers can treat payment stablecoins under Exchange Act Rule 15c3-1, known as the net capital rule.
The staff said it would not object if broker-dealers apply a 2% haircut to proprietary positions in payment stablecoins when calculating net capital. This means firms can count 98% of a stablecoin’s value toward regulatory capital.
This changed earlier treatment that effectively imposed a 100% haircut. Under that approach, stablecoins could not count toward capital at all. …
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