• 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. …

Read The Full Article SEC Issues 2% Stablecoin Capital Guidance, Softening Regulatory Pressure On Coin Edition.

• 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. …

Read The Full Article SEC Issues 2% Stablecoin Capital Guidance, Softening Regulatory Pressure On Coin Edition.