The U.S. Securities and Exchange Commission (SEC) has issued new guidance that significantly alters how broker-dealers can treat their stablecoin holdings for regulatory capital purposes. In an update to its "Broker Dealer Financial Responsibilities" Frequently Asked Questions (FAQ) document, the SEC's Division of Trading and Markets stated that staff would not object if a broker-dealer applied a 2% haircut on proprietary stablecoin positions.
A haircut is a percentage reduction applied to an asset's value when calculating regulatory capital or collateral. This new 2% figure marks a dramatic shift from previous practices, where some broker-dealers had reportedly been applying a 100% haircut, effectively treating stablecoins as unusable for regulatory capital and making their holding financially punitive.
Tonya Evans, a fintech strategist and board member of Digital Currency Group, explained the impact: "A 2% haircut changes that calculus entirely by putting payment stablecoins on par with money market funds, which hold similar underlying assets like U.S. Treasuries, cash, and short-term government securities." This alignment means stablecoins are now treated similarly to money market funds on a firm's balance sheet, removing a major barrier to their institutional adoption.
SEC Commissioner Hester Peirce, who leads the agency's crypto task force, welcomed the guidance, stating: "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." She framed stablecoins not as speculative tokens but as infrastructure tools for settlement and tokenized securities markets.
The guidance is part of a broader regulatory reset. The SEC has been working on several digital asset initiatives, including a crypto task force addressing custody and tokenization, "Project Crypto" to update legacy rules, and plans for an innovation exemption tied to tokenized capital markets. At the federal level, agencies are also implementing the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), passed in 2025, which establishes a nationwide framework for stablecoin regulation.
Cody Carbone, CEO of the Digital Chamber, noted: "While this guidance does not create new rules, it helps reduce uncertainty for firms seeking to operate compliantly under current securities laws." Industry experts highlight the practical implications: broker-dealers can now more easily custody tokenized securities, provide liquidity, aid settlement, and advance tokenized finance. Larry Florio, deputy general counsel at Ethena Labs, emphasized that "Everywhere from Robinhood to Goldman Sachs run on these calculations. Stablecoins are now working capital."
Former Avalanche COO Luigi D'Onorio DeMeo called the move one that "removes a major friction point" and "lowers the barrier for deeper integration of stablecoins into traditional finance rails = better liquidity, more efficient settlement, and broader institutional on-ramp."
The guidance is an informal staff policy, not a formal rule, meaning it could be reversed more easily. However, it represents a significant step toward integrating digital assets into the regulated financial system by reducing balance-sheet friction for broker-dealers.
