SEC OKs 2% Haircut on Stablecoins under Broker-Dealer Net Capital Rules
Staff at the U.S. Securities and Exchange Commission (SEC) have clarified that broker-dealers may apply a 2% “haircut” to their stablecoin holdings for net capital calculations, according to an FAQ from the Division of Trading and Markets published last week.
Before the update, firms faced uncertainty over whether dollar-pegged stablecoins required a 100% haircut, effectively excluding them from net capital under existing rules. The staff guidance, issued in the document “Frequently Asked Questions Relating to Crypto Asset Activities and Distributed Ledger Technology,” states the SEC would not object to the 2% treatment.
The SEC’s net capital rules require broker-dealers to maintain minimum capital to meet obligations and withstand market stress, the staff noted. Under the clarified treatment, for example, a broker-dealer holding $100 million in stablecoins could count $98 million toward net capital requirements.
SEC Commissioner Hester Peirce welcomed the clarification, saying, “In my view, a 100% haircut would be unnecessarily punitive given the underlying reserve assets that back payment stablecoins.”
Peirce added that the move could broaden broker-dealers’ ability to transact in digital assets: “Stablecoins are essential to transacting on blockchain rails. Using stablecoins will make it feasible for broker-dealers to engage in a broader range of business activities relating to tokenized securities and other crypto assets.”
The guidance allows broker-dealers to hold stablecoins without triggering disproportionate capital charges and to treat the tokens in a manner comparable to money market funds, which invest in low-risk cash equivalents such as U.S. Treasurys and certificates of deposit.
In a social media post, Marc Baumann, CEO of crypto intelligence firm 51, called the staff communication “a big deal,” saying “Wall Street can now actually hold and use stablecoins without destroying their capital ratios.”
Stablecoins expand in the United States, though some officials remain skeptical
The stablecoin market cap has slipped by about $6 billion from its December 2025 peak above $300 billion, but stands at roughly $295 billion and has generally trended higher since 2023, according to RWA.XYZ.
In July 2025, United States President Donald Trump signed the GENIUS stablecoin bill into law, a development widely viewed as significant for the digital asset sector. Data from RWA.XYZ show the stablecoin market capitalization was just north of $252 billion at the time and increased following the bill’s passage.
Despite the sector’s growth and its potential implications for dollar usage in global markets, Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, remained critical of the utility of stablecoins and crypto. “I could send any one of you $5 with Venmo, or PayPal, or Zelle, so what is it that this magical stablecoin can do?” he said on Thursday.
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