In a significant move, the U.S. Securities and Exchange Commission (SEC) has clarified that broker-dealers can apply a 2% reduction, or 'haircut,' to their stablecoin holdings when calculating net capital requirements. Previously, there was uncertainty in the industry about whether a full 100% deduction was necessary, effectively excluding stablecoins from net capital calculations.
This clarification was issued by the SEC’s Division of Trading and Markets through a document addressing frequently asked questions about crypto asset activities and distributed ledger technology. Commissioner Hester Peirce welcomed the decision, describing a 100% deduction as excessively harsh given the reserve assets backing stablecoins.
The SEC mandates that broker-dealers maintain a certain level of net capital to cover financial obligations and potential losses due to market fluctuations. With the new 2% haircut guideline, if a broker-dealer holds $100 million in stablecoins, $98 million can now be counted toward their net capital. Peirce highlighted the importance of stablecoins in facilitating transactions on blockchain platforms and enabling broker-dealers to participate in a wider array of activities related to tokenized securities and other crypto assets.
Marc Baumann, CEO of crypto analytics firm 51, praised the SEC’s update on social media, stating it allows Wall Street to hold and utilize stablecoins without negatively impacting their capital ratios. This change aligns stablecoins more closely with money market funds, which are known for holding low-risk cash equivalents like U.S. Treasurys.
Despite the growing acceptance of stablecoins, not all officials are convinced of their utility. Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, voiced skepticism, questioning the need for stablecoins when existing digital payment methods such as Venmo and PayPal are available.
The stablecoin market has experienced fluctuations, recently dropping by approximately $6 billion from a December 2025 peak, settling at a $295 billion market cap. This comes after a surge following the signing of the GENIUS stablecoin bill into law by President Donald Trump in July 2025, a milestone for the crypto industry.
While stablecoins have seen rapid growth and increased their influence on the global financial market, their future regulatory landscape remains a topic of discussion and development.