SEC Sets 2% Haircut on Broker-Dealer Stablecoin Holdings in Capital Calculations

The U.S. Securities and Exchange Commission updated its "Broker Dealer Financial Responsibilities" FAQ this week, allowing SEC-regulated broker-dealers to count 98% of stablecoin holdings as regulatory capital with a 2% haircut, the agency said. The new Question No. 5 covers dollar-linked tokens such as Circle's USDC and Tether's USDT, replacing the previously understood 100% haircut. SEC Commissioner Hester Peirce said the change will enable broker-dealers to engage in a broader range of activities relating to tokenized securities and other crypto assets, and added that existing SEC rules could be amended to account for payment stablecoins. Tonya Evans wrote on X that the shift means stablecoins are now treated like money market funds on a firm's balance sheet, noting some broker-dealers had been zeroing out stablecoin holdings in capital tallies before this week.