SEC Tells Broker-Dealers Stablecoins Can Count Toward Net Capital

The U.S. Securities and Exchange Commission (SEC) has recently provided important guidance for broker-dealers regarding the treatment of stablecoin holdings in relation to net capital requirements. This clarification is seen as a significant development for the financial system, particularly for those involved in cryptocurrency trading.

SEC clarifies stablecoins can be counted for net capital requirements

Last week, SEC staff announced that broker-dealers can now apply a 2% haircut to their stablecoin holdings. This means that if a broker-dealer holds $100 million in stablecoins, they can count $98 million towards their net capital requirements. This is a departure from previous uncertainty, where broker-dealers were unsure if they needed to apply a full 100% haircut to these dollar-pegged assets, effectively excluding them from net capital calculations.

2% haircut policy provides relief for broker-dealers

The SEC's decision to allow a 2% haircut is a welcome relief for broker-dealers. By treating stablecoins similarly to money market funds, which hold low-risk cash equivalents like U.S. Treasuries, broker-dealers can now hold stablecoins without excessive concerns about meeting net capital requirements. Commissioner Hester Peirce commented that a full 100% haircut would have been excessively punitive, given the collateral backing these stablecoins.

Current trends in the stablecoin market and regulatory responses

The stablecoin market has seen considerable fluctuations, recently experiencing a drop in market capitalization from over $300 billion to around $295 billion. This follows significant growth since 2023, particularly after the passage of the GENIUS stablecoin bill in July 2025, which was a pivotal moment for the industry. Despite the growth, some officials, including Neel Kashkari from the Federal Reserve Bank of Minneapolis, have expressed skepticism regarding the practical use cases of stablecoins, questioning their advantages over traditional payment methods.

Future outlook for stablecoins and implications for crypto regulation

The SEC's clarification marks a turning point for the integration of stablecoins into the broader financial ecosystem. As broker-dealers gain more operational flexibility, the implications for the crypto market could be vast. The ongoing evolution of regulatory attitudes towards stablecoins will likely shape their future and influence broader discussions on cryptocurrency regulations. As the market continues to mature, stakeholders will be watching closely to see how these developments unfold.