The U.S. Securities and Exchange Commission (SEC) has made a significant, albeit quiet, policy shift regarding stablecoin holdings for broker-dealers. In an update to its "Broker Dealer Financial Responsibilities" FAQ, the agency now permits these regulated firms to treat stablecoins as regulatory capital.
Previously, stablecoins like USDC and Tether faced a 100% "haircut," meaning they couldn't be counted towards a firm's capital. The SEC's new guidance introduces a 2% haircut, allowing firms to count 98% of their stablecoin holdings. This aligns stablecoins with other financial products, such as money market funds, on a firm's balance sheet.
This change effectively removes a financial penalty for holding stablecoins, enabling broker-dealers to more easily custody tokenized securities, facilitate trading, and provide liquidity. SEC Commissioner Hester Peirce noted that this update makes it feasible for broker-dealers to engage in a broader range of business activities related to tokenized securities and other crypto assets. While this guidance is informal, it significantly reduces uncertainty for firms operating within current securities laws and aims to advance tokenized finance.