Last week, U.S. Securities and Exchange Commission (SEC) staff clarified that broker-dealers can apply a 2% “haircut” to their stablecoin holdings without objection from the SEC.
Previously, broker-dealers were unsure whether to apply a 100% haircut to the value of their dollar-pegged stablecoins, which meant they did not count the tokens in their net capital under current regulations.
The explanation came in the form appointment by the staff of the SEC’s Division of Trading and Markets as “Frequently Asked Questions Regarding the Crypto Assets and Distributed Ledger Technology Business.”
In response, Commissioner Hester Peirce he said: In my opinion, a 100% haircut would be unnecessarily punitive given the underlying reserve assets that back the stablecoins.”
The SEC requires broker-dealers to maintain a minimum level of net capital to meet financial obligations and absorb potential losses resulting from market downturns and volatility, According to for staff explanations.
For example, if a broker-dealer holds $100 million worth of stablecoins, a 2% haircut allows it to count $98 million towards its net capital requirements. Peirce celebrates the explanation as positive for the financial system he said: :
“Stablecoins are essential for transacting on blockchain rails. Using stablecoins will enable broker-dealers to engage in a broader range of business activities related to tokenized securities and other crypto assets.”
The clarification means that broker-dealers can hold stablecoins without fear of excessive net capital requirements and can treat tokens similarly to money market funds, which are instruments that hold low-risk cash equivalents such as U.S. Treasuries and certificates of deposit.
On social media post over the weekend, Marc Baumann, CEO of crypto intelligence firm 51, called the SEC staff’s communication “a big deal,” adding that “Wall Street can now actually hold and use stablecoins without destroying their capital ratios.”
Related: SEC leaders are struggling to clarify how tokenized securities interact with existing regulations
Stablecoins are gaining popularity in the United States, but not all American officials are convinced
The stablecoin market capitalization recently hit a stumbling block, falling by around $6 billion from its December 2025 peak of over $300 billion.
However, the market capitalization still stands at $295 billion, which has been growing steadily since 2023, according to the company. data from RWA.XYZ.
United States President Donald Trump signed the GENIUS Stablecoin Act in July 2025, which was considered a watershed moment for the cryptocurrency industry.
According to data from the site, the market capitalization of stablecoins was just north of $252 billion when the bill was signed, and increased after the bill was passed. RWA.XYZ.
Despite the meteoric rise of stablecoins and its implications for the U.S. dollar’s dominance in global financial markets, Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, maintains that stablecoins and cryptocurrencies have no real applications.
“I could send each of you $5 via Venmo, PayPal, or Zelle, so what can this magical stablecoin do?” he said on Thursday.
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