The U.S. Securities and Exchange Commission (SEC) staff has clarified that broker-dealers can now apply a 2% “haircut” to their stablecoin holdings without objection. Previously, these firms faced uncertainty, with some applying a 100% haircut, effectively excluding stablecoins from their net capital calculations under existing regulations.
This guidance, issued through FAQs on crypto asset activities, means that for every $100 million in stablecoins held, broker-dealers can count $98 million toward their net capital requirements. This adjustment is viewed as a positive development for the financial system, enabling broker-dealers to engage more readily with tokenized securities and other crypto assets.
Commissioner Hester Peirce supported the move, stating that a 100% haircut was unnecessarily punitive. The clarification allows stablecoins to be treated similarly to low-risk money market funds. Industry experts view this as a significant step, allowing Wall Street to integrate stablecoins without compromising capital ratios.
The stablecoin market, with a current market cap of $295 billion, has seen substantial growth since 2023. This follows legislative milestones, including President Trump signing the GENIUS stablecoin bill into law in July 2025. Despite this traction, some officials, like Minneapolis Fed President Neel Kashkari, remain skeptical about the practical utility of stablecoins compared to existing payment methods.