| What to Know: – SEC staff allows 2% haircut for qualifying payment stablecoins. – Broker-dealers may treat payment stablecoins as having a ready market. – Staff guidance, not rulemaking; clarifies net capital treatment, subject to revision. |
According to CCN, staff in the SEC’s Division of Trading and Markets told broker-dealers they may treat qualifying “payment stablecoins” as having a ready market and apply a 2% haircut for capital. In practical terms, positions in qualifying payment stablecoins would be subject to a minimal deduction rather than being fully excluded from net capital under Rule 15c3-1.
This is staff-level guidance, not a formal rule amendment, and therefore may be revised. The shift nevertheless clarifies how broker-dealers can hold and use payment stablecoins within the existing net capital framework while maintaining conservative risk charges.
Consider a broker-dealer that holds $10 million in a qualifying payment stablecoin. Under a 100% haircut scenario, none of that balance would count toward Rule 15c3-1 net capital, effectively treating the asset as non-allowable for capital purposes.
Under the new staff interpretation, a 2% haircut would apply. Ninety-eight percent of the $10 million, $9.8 million, would count toward net capital, materially improving liquidity metrics while preserving a buffer for price and redemption risk.
Providing context on the shift, SEC Commissioner Hester M. Peirce described a 100% deduction for compliant payment stablecoins as “unnecessarily punitive,” and noted support for the staff FAQ allowing a 2% haircut. Her remarks underscore that the change aims to better align haircuts with the quality of underlying reserves while safeguarding investors.
As reported by CryptoAdventure, this clarification may pave the way for deeper integration of stablecoins into traditional finance workflows. Any broader impact will still depend on eligibility determinations, operational controls, and future rulemaking.
At the time of this writing, Coinbase Global (COIN) closed at $160.24, down 6.48% on the day, based on NasdaqGS delayed quotes. This market context does not imply any view on the guidance’s effects on specific equities.
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