SEC Staff Says Broker-Dealers May Apply 2% Net Capital Haircut on Payment Stablecoins

The U.S. Securities and Exchange Commission's Division of Trading and Markets issued an FAQ on Feb. 19 stating staff would not object if broker-dealers apply a 2% haircut to proprietary positions in payment stablecoins when calculating net capital under Exchange Act Rule 15c3-1, the SEC disclosed. The guidance clarifies that existing broker-dealer financial responsibility standards can apply to payment stablecoins, with responses representing staff views only that carry no legal force and create no new obligations. The FAQ also addresses custody, capital treatment, transfer agent registration, national securities exchange and alternative trading system operations, clearing and settlement, and exchange traded products linked to crypto assets, while explaining Rule 15c3-3 application to crypto-asset securities and noting that compliance with the Commission's 2020 special purpose broker-dealer statement is not mandatory. Commissioner Hester M. Peirce supported the 2% haircut approach, called stablecoins essential to transacting on blockchain rails, and said she would like the Commission to consider amending Rule 15c3-1 to account for payment stablecoins.