SEC Quietly Lets Broker-Dealers Count Stablecoins as Capital -- The 2% Haircut That C

The SEC just made one of those quiet regulatory changes that sounds technical but has massive downstream effects for anyone trading through a US broker-dealer. Buried in an FAQ update on its website, the agency told broker-dealers they can apply just a 2% haircut to stablecoin holdings when calculating regulatory capital.

That means brokers can now count 98% of their stablecoin holdings (USDC, USDT, etc.) as capital. Previously, those holdings were effectively zeroed out -- a 100% haircut that made it financially punitive for any brokerage to hold them.

What Changed

The SEC added a new question to its "Broker Dealer Financial Responsibilities" FAQ specifying that stablecoins receive a 2% haircut -- the same treatment as money market funds. This is part of the agency's ongoing Project Crypto work under its Crypto Task Force.

Commissioner Hester Peirce: "This will make it feasible for broker-dealers to engage in a broader range of business activities relating to tokenized securities and other crypto assets."

Tonya Evans, DCG board member: "Stablecoins are now treated like money market funds on a firm's balance sheet. Until today, some broker-dealers were zeroing out stablecoin holdings in their capital calculations. Holding them was a financial penalty. That's over."

Larry Florio, Ethena Labs deputy general counsel: "Everywhere from Robinhood to Goldman Sachs run on these calculations."

Why This Matters for Traders

Capital calculation rules determine what business activities brokerages can profitably offer. When stablecoins carried a 100% haircut, they were dead weight on the balance sheet. Brokers had zero incentive to custody them or build services around them.

With a 2% haircut, every major brokerage can now:

• Hold stablecoins as working capital
• Custody tokenized securities without destroying capital ratios
• Provide liquidity for crypto settlement
• Build integrated crypto-traditional trading services

For futures and derivatives traders specifically, this accelerates the timeline for your broker to offer crypto-denominated collateral, stablecoin-based settlement, and tokenized securities trading. The CFTC already expanded digital asset margin rules earlier this month (allowing crypto to back futures positions). Now the SEC side is catching up on the brokerage infrastructure.

The Caveat

This is informal staff guidance, not a formal rule -- it's as easy to reverse as it was to issue. But given the current administration's pro-crypto stance and the bipartisan GENIUS Act (stablecoin legislation) moving through Congress, the direction of travel is clear. Ripple CEO Brad Garlinghouse said this week he sees an 80% chance the CLARITY Act passes by April.

Source: CoinDesk

Have a good weekend!

-- Fi
"Regulation doesn't move markets until it does -- and this one just removed a wall that every brokerage in America was leaning against."