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The U.S. Securities and Exchange Commission has made a subtle yet potentially far-reaching change regarding how broker-dealers handle stablecoins on their balance sheets. In a small update to its Broker-Dealer Financial Responsibilities FAQ, the agency clarified that stablecoin holdings can now be included in regulatory capital calculations.
While the change may seem minor, it represents a significant shift in how regulated financial firms can incorporate dollar-backed digital assets into their operations.
From Full Exclusion to Limited Haircut
Until now, many broker-dealers effectively applied a 100% haircut to stablecoin holdings when calculating regulatory capital. That meant the assets were excluded from capital buffers, creating little incentive to hold them.
Under the revised guidance, firms are instructed to apply only a 2% haircut. In practical terms, broker-dealers can now count 98% of their stablecoin holdings toward regulatory capital requirements. This places stablecoins in a position similar to certain cash-like instruments already recognized within traditional financial frameworks.
The change removes a significant financial penalty that previously limited the role of stablecoins inside regulated securities firms.
Implications for Tokenized Finance
Capital rules directly shape how broker-dealers operate. These firms are central to providing liquidity, handling customer transactions, and facilitating settlement across markets. By allowing stablecoins to function as working capital, the SEC’s guidance makes it easier for broker-dealers to engage in crypto-related activities.
This adjustment could support broader participation in tokenized securities, digital asset trading, and blockchain-based settlement systems. It also signals a shift toward integrating certain crypto instruments into the existing regulatory structure rather than keeping them at the margins.
Informal Guidance, Real Consequences
The update was issued as staff guidance rather than a formal rule, meaning it did not go through the traditional rulemaking process. While this approach allows the SEC to move quickly, it also means the policy could be revised more easily in the future.
Still, the clarification reduces uncertainty for firms operating under current securities laws. It suggests that regulators are increasingly willing to recognize stablecoins as legitimate components of the financial system.
Taken together, the move may appear quiet, but it has the potential to meaningfully expand the use of stablecoins within U.S. broker-dealers and the broader capital markets infrastructure.
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