In one of its most market-friendly crypto moves yet, the U.S. Securities and Exchange Commission has dramatically reduced the capital “haircut” applied to qualifying payment stablecoins.
Under new guidance, broker-dealers can now apply just a 2% haircut instead of the previously assumed 100% deduction. In practical terms, that means $100 worth of approved stablecoins can count as $98 toward a firm’s net capital. Previously, many firms treated stablecoin holdings as if they were worth zero for regulatory capital purposes.
What the New SEC Guidance Means
In an updated FAQ from the SEC’s Division of Trading and Markets, staff stated they would not object if a broker-dealer applies a 2% haircut on proprietary positions in qualifying payment stablecoins when calculating net capital.
This is a major shift.
For years, uncertainty around regulatory treatment discouraged regulated firms from holding stablecoins on balance sheet. The effective 100% deduction made on-chain settlement uneconomical for broker-dealers and limited the integration of stablecoins into securities trading workflows.
With the haircut now reduced to 2%, stablecoins are effectively being treated more like conservative money market funds rather than speculative instruments.
Alignment With the GENIUS Act
The policy change follows the passage of the GENIUS Act, which established clearer reserve requirements and oversight standards for payment stablecoin issuers.
Under that framework, compliant stablecoins must meet strict backing and transparency standards. The new SEC position signals that regulators are increasingly comfortable viewing properly structured stablecoins as cash equivalents rather than exotic crypto assets.
Legal analysts say the haircut reduction represents a logical continuation of that legislative direction. By allowing stablecoins to count meaningfully toward regulatory capital, the SEC is effectively opening the door for deeper integration between traditional financial infrastructure and blockchain settlement rails.
A Boost for On-Chain Settlement
For broker-dealers, the impact is straightforward.
Stablecoins can now sit inside regulated balance sheets instead of being treated as unusable assets. That makes on-chain settlement more viable for securities transactions and digital asset trading desks.
Some market observers believe this could accelerate tokenization efforts and encourage regulated firms to experiment more aggressively with blockchain-based settlement systems.
Crypto Markets Hold Steady
The policy shift comes as major cryptocurrencies trade in relatively stable ranges.
Bitcoin is hovering near $68,100, with roughly $33 billion in 24-hour trading volume. Ethereum trades around $1,960 on about $18 billion in daily turnover. Meanwhile, Tether continues to hold its dollar peg near $1.00, posting between $57 billion and $68 billion in 24-hour volume as the largest dollar-linked stablecoin by liquidity.
While prices remain steady, regulatory clarity often plays a long-term role in shaping institutional participation.
A Signal of Regulatory Evolution
Policy watchers expect the haircut decision to influence upcoming debates around broader crypto market structure legislation, including proposals such as the CLARITY Act.
More importantly, the move sends a clear signal: the SEC appears increasingly willing to let compliant stablecoins operate within the regulated financial system rather than forcing them to remain at its edges.
For broker-dealers and institutional trading desks, that shift could mark the beginning of a new phase in the relationship between traditional finance and digital assets.
