Broker-dealers in the U.S. can now apply a 2% “haircut” to their stablecoin holdings, according to recent guidance from the SEC. This clarification alleviates previous uncertainties regarding the application of a 100% haircut to dollar-pegged stablecoins, which would have prevented their inclusion in net capital calculations.
The SEC’s update, issued through its Division of Trading and Markets, aims to streamline how broker-dealers manage their capital in light of stablecoin assets. Commissioner Hester Peirce advocated for this change, emphasizing that a full haircut would impose undue restrictions given the stablecoins' backing assets.
With this new approach, if a broker-dealer possesses $100 million in stablecoins, they can count $98 million toward their net capital requirements, similar to traditional money market funds. This development is seen positively across the financial sector, with industry leaders noting its potential to enhance business activities related to tokenized securities.
Despite a recent decline in the stablecoin market cap, which dropped by $6 billion from last December's peak of over $300 billion, the overall market remains robust at approximately $295 billion.