Dealer-dealers regulated by the U.S. Securities and Change Fee (SEC) can deal with their stablecoin holdings as regulatory capital, in response to a tweak this week to a frequently-asked-questions doc maintained by the company.
That is a seismic shift supplied within the type of a minor addition to the SEC’s “Dealer Vendor Monetary Obligations” FAQ. It is on-brand for a regulator that has made a gentle collection of adjustments to its crypto strategy by means of casual steerage, business correspondence and employees statements ever since its Crypto Job Power started work in the course of the administration of President Donald Trump.
On this case, a brand new query No. 5 was added about what sort of “haircut” a agency ought to tackle its holdings of stablecoins — the dollar-tied tokens reminiscent of Circle’s USDC and Tether’s USDT. The reply was 2%, which means that as a substitute of the earlier understanding that such property weren’t thought-about measurable towards a broker-dealer’s capital tally (100% haircut), the corporations will be capable to depend 98% of these holdings.
“Whereas this steerage doesn’t create new guidelines, it helps scale back uncertainty for corporations looking for to function compliantly beneath present securities legal guidelines,” mentioned Cody Carbone, CEO of the Digital Chamber.
This places stablecoins on the identical footing as different monetary merchandise.
“Which means stablecoins at the moment are handled like cash market funds on a agency’s stability sheet,” Tonya Evans, a former professor who now runs a crypto schooling enterprise and is on the board of administrators at Digital Foreign money Group, wrote in a publish on social media web site X. “Till right now, some broker-dealers have been zeroing out stablecoin holdings of their capital calculations. Holding them was a monetary penalty. That’s over.”
Earlier than, the extra stringent SEC limits meant these corporations — corporations registered with the SEC to deal with clients’ securities transactions and in addition commerce in securities on their very own behalf — weren’t simply in a position to custody tokenized securities or act as a go-between for buying and selling. Now the corporations that comply with this steer from the company will be capable to extra simply present liquidity, help settlement and advance tokenized finance.
“In every single place from Robinhood to Goldman Sachs run on these calculations,” Larry Florio, deputy common counsel at Ethena Labs, wrote in an explainer posted on LinkedIn. Stablecoins at the moment are working capital, he mentioned.
SEC Commissioner Hester Peirce runs the company’s job power and issued an announcement on the change, contending that utilizing stablecoins “will make it possible for broker-dealers to interact in a broader vary of enterprise actions regarding tokenized securities and different crypto property.” And he or she mentioned she needs to think about how the present SEC guidelines “might be amended to account for cost stablecoins.”
That is the downside of casual employees insurance policies — they’re as simple to reverse as they have been to difficulty, they usually do not carry the burden (and authorized protections) of a rule.
The SEC has been engaged on some crypto guidelines in latest months, however they have not but been produced, and the method normally takes a number of months — generally years. Even a proper rule can nonetheless be reversed by a brand new management on the company, which is why crypto advocates are pushing for extra laws from Congress that might set the federal government’s digital property strategy into regulation, reminiscent of final yr’s Guiding and Establishing Nationwide Innovation for U.S. Stablecoins (GENIUS) Act.
UPDATE (February 20, 2026, 22:23 UTC): Provides remark from Digital Chamber CEO.
