The SEC has cut the capital “haircut” on qualifying payment stablecoins from 100% to just 2%. This means $100 of approved stablecoins can now count as $98 toward a broker-dealer’s net capital.
Previously, many firms assumed stablecoins counted for nothing in capital calculations, making on-chain settlement uneconomic. The new guidance is part of the SEC’s effort to align stablecoins with conservative money market funds.
SEC Commissioner Hester Peirce called the change a long-overdue correction. She said the previous rules made stablecoin balances effectively worthless for regulated dealers.
The move follows last year’s GENIUS Act, which set reserve and oversight standards for payment stablecoin issuers. Compliant tokens are now treated more like cash equivalents rather than exotic derivatives.
Market lawyers and trading desks welcomed the decision. Prof. Tonya Evans said stablecoins are now treated like money market funds on a firm’s balance sheet. The update also clarifies that exchanges can pair crypto securities with non-securities like Bitcoin.
Major cryptocurrencies are trading sideways. Bitcoin is near $68,100 on about $33 billion in 24-hour volume. Ethereum is around $1,960 with $18 billion traded, and Tether (USDT) remains near $1 with $57–$68 billion in daily volume.
Analysts say the haircut cut could encourage more use of stablecoins in regulated markets and influence upcoming crypto market structure legislation, including the CLARITY Act expected later this year.
The SEC’s move signals that stablecoins can now operate inside traditional financial plumbing, rather than being pushed to the margins.
