Original Author: Tonya M. Evans

Translated and Rewritten by: Odaily Planet Daily Golem

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The SEC’s 2% Stablecoin Haircut: A Pivotal Step Towards Mainstream Digital Asset Integration

On February 19th, the U.S. Securities and Exchange Commission (SEC)’s Division of Trading and Markets released new Frequently Asked Questions (FAQs), offering crucial clarification on how broker-dealers should treat payment stablecoins under net capital rules. This announcement was swiftly followed by a statement from Hester Peirce, Chair of the SEC’s Crypto Working Group, aptly titled “Cutting Two Would Do.”

Peirce confirmed that SEC staff would not object if broker-dealers applied a “2% haircut” to their proprietary positions in eligible payment stablecoins when calculating net capital, a stark contrast to the previously prohibitive 100% haircut. While this technical accounting adjustment might seem esoteric, it represents one of the most significant moves since early 2025 in the SEC’s evolving stance on cryptocurrencies, actively paving the way for digital assets to integrate into the core of mainstream finance.

Demystifying Net Capital and Haircuts: A Fundamental Shift

To grasp the profound implications of this change, one must first understand the concept of “haircuts” within the broker-dealer regulatory framework. Under Rule 15c3-1 of the Securities Exchange Act, broker-dealers are mandated to maintain minimum net capital – essentially a liquidity buffer designed to safeguard clients in times of financial distress. When calculating this buffer, firms must apply “haircuts” to various assets on their books, reducing their recorded value to accurately reflect inherent risks. Consequently, riskier or more volatile assets incur larger haircuts, whereas cash typically receives none.

Historically, many broker-dealers independently applied a punitive 100% haircut to stablecoins. This meant that stablecoin holdings were entirely disregarded in capital calculations, rendering their possession prohibitively expensive and financially unviable for regulated financial intermediaries. The new 2% haircut fundamentally reconfigures this equation, effectively elevating payment stablecoins to a status comparable to money market funds that hold similar underlying assets, such as U.S. Treasuries, cash, and short-term government bonds.

As Commissioner Peirce highlighted, the reserve requirements for authorized stablecoin issuers under the GENIUS Act are, in fact, more stringent than the “eligible securities” requirements for registered money market funds. From her perspective, a 100% haircut was excessively harsh given the robust backing assets of these instruments.

Stablecoins: The Indispensable Engine of On-Chain Finance

This regulatory adjustment is critical because stablecoins serve as the foundational “backbone” of on-chain transactions. They are the primary mechanism through which value traverses blockchain networks, acting as the judicious engine that powers transactions, settlements, and payments within the digital economy.

Without the ability to hold these tokens without incurring severe capital penalties, broker-dealers would remain largely excluded from participating effectively in nascent tokenized securities markets, facilitating the creation of physical exchange-traded products (ETPs), or providing the integrated crypto and securities services that institutional clients increasingly demand.

A Timely Bridge: The GENIUS Act and SEC Alignment

The timing of this 2% haircut announcement is strategically crucial. The GENIUS Act, signed into law by President Trump on July 18, 2025, established the nation’s inaugural comprehensive federal framework for payment stablecoins. This landmark legislation introduced rigorous reserve requirements, licensing procedures, and robust regulatory mechanisms for stablecoin issuers, embedding them within a distinct regulatory structure that differentiates payment stablecoins from other digital assets.

Federal regulators, including the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), are currently working to finalize critical implementation details by a tight July 2026 deadline. Peirce’s statement, coupled with the new FAQs, skillfully bridges the gap between the GENIUS Act’s legislative framework and the SEC’s existing rulebook.

The FAQ’s definition of “payment stablecoin” is deliberately forward-looking. Prior to the GENIUS Act’s effective date, it references existing state-level regulatory standards – such as state money transmitter licenses, reserve requirements consistent with the Act, and monthly attestation reports from registered accounting firms. Upon the GENIUS Act’s full implementation, the definition will seamlessly transition to the Act’s own criteria. This dual-track approach empowers broker-dealers to begin treating stablecoins as legitimate trading instruments immediately, rather than having to await the GENIUS Act’s complete rollout.

Commissioner Peirce also emphasized that this staff guidance is merely the initial step. She has actively invited market participants to provide feedback on how Rule 15c3-1 could be formally revised to permanently incorporate payment stablecoins and sought input on other SEC rules that may require modernization. This open call for public comment underscores the Commission’s commitment to a more systemic and enduring integration of stablecoins into its regulatory architecture, extending beyond a singular FAQ.

From Enforcement to Integration: The Evolving Regulatory Landscape

Since the formation of the Crypto Working Group in January 2025 under then-acting Chair Mark Uyeda, the SEC has systematically and incrementally moved away from the enforcement-centric regulatory approach that characterized the tenure of former Chair Gary Gensler.

Notable examples of this shift include the SEC’s guidance on broker-dealer custody of crypto assets, clarifying that crypto asset securities do not necessitate paper-form control requirements. This has enabled broker-dealers to participate in the creation and redemption of physical ETPs and clarified how alternative trading systems (ATSs) can support crypto trading pairs. The comprehensive FAQ page, now encompassing the stablecoin guidance, has become an invaluable resource, addressing topics from transfer agent obligations to the scope of Securities Investor Protection Corporation (SIPC) protection for non-security crypto assets.

The practical and immediate ramifications for the traditional financial services industry are substantial:

• Banks and broker-dealers evaluating entry into the digital asset space now possess unprecedented clarity on the capital treatment of their stablecoin holdings.
• Firms previously deterred by the operational costs of maintaining significant stablecoin positions (which effectively netted to zero on their balance sheets) can now re-evaluate their strategies.
• Custodians, clearing firms, and ATS operators exploring tokenized securities settlement can proceed with the assurance that stablecoins, as settlement assets, will no longer be viewed as a regulatory burden.

For the broader investment community, particularly those historically underserved by traditional finance, the ripple effects are equally significant. The International Monetary Fund (IMF) has consistently highlighted the utility of stablecoins in facilitating cross-border payments, serving as savings instruments in emerging markets, and broadening financial inclusion. By enabling regulated intermediaries to hold and transact stablecoins without incurring exorbitant capital penalties, a wider array of such services can be channeled through trusted, regulated avenues, mitigating the higher consumer risks associated with unregulated offshore platforms.

Navigating Persistent Friction: Federal and State Dynamics

It is important to acknowledge that this progressive shift does not occur in a vacuum; ongoing friction between federal and state regulatory bodies persists. The GENIUS Act’s implementation timeline is notably ambitious, requiring state regulators to certify their regulatory frameworks by July 2026.

Unresolved issues, such as consumer fraud protection concerns raised by figures like New York Attorney General Letitia James, continue to pose challenges. The inevitable interplay between federal and state regulatory oversight will undoubtedly generate further points of friction. Moreover, broader market structure legislation, designed to definitively classify digital assets as either securities or commodities, remains pending in the Senate.

Therefore, the 2% haircut, however technical or minor it may initially appear, carries a deeper significance: it signals a proactive and concerted effort by federal securities regulators to adapt existing rules and systematically integrate stablecoins as functional financial instruments, moving them decisively from the periphery to the core of the financial system. Whether this regulatory evolution can maintain pace with market innovation, and whether the GENIUS Act’s promise will be fully realized, remains to be seen. Yet, in the journey from regulatory skepticism to seamless integration, it is precisely this kind of meticulous, often unsung technical work that transforms policy aspirations into tangible market practice.

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