SEC Updates Broker-Dealer FAQ to Allow 2% Haircut on Stablecoin Capital Recognition
The U.S. Securities and Exchange Commission (SEC) updated its Broker-Dealer Financial Responsibility FAQ this week to allow broker-dealers to recognize stablecoins in regulatory capital with a 2% haircut, according to the new guidance. Stablecoins, including USDC issued by Circle and USDT issued by Tether, may now be valued at 98% of book value for capital purposes. The market previously applied a 100% haircut to stablecoins, effectively excluding them from capital calculations.