SEC Allows Broker‑Dealers to Count Stablecoins Toward Net Capital with a 2% Haircut
Washington, D.C., Feb. 22, 2026 — The U.S. Securities and Exchange Commission’s Division of Trading and Markets clarified last week that broker‑dealers may treat dollar‑pegged stablecoins as eligible assets for net‑capital calculations, applying a modest 2 percent haircut. The guidance, issued as part of the SEC’s “Frequently Asked Questions Relating to Crypto Asset Activities and Distributed Ledger Technology,” eliminates the previous ambiguity that many firms faced when determining whether stablecoins could be included in their regulatory capital metrics.
What the clarification means
Under the new guidance, a broker‑dealer holding $100 million in qualifying stablecoins can count $98 million toward its required net capital. The 2 percent reduction reflects the SEC’s view that the underlying reserve assets backing payment stablecoins are sufficiently low‑risk to merit treatment similar to money‑market funds or other cash‑equivalent instruments.
Commissioner Hester Peirce, a long‑time advocate for a pragmatic regulatory approach to crypto, welcomed the move, arguing that a full 100 percent haircut would be “unnecessarily punitive” given the collateral backing most stablecoins. She added that stablecoins are “essential to transacting on blockchain rails” and that their inclusion in capital calculations will broaden the range of activities broker‑dealers can pursue with tokenized securities and other crypto assets.
Industry reaction
The announcement was met with approval across the market‑technology nexus. Marc Baumann, chief executive of crypto‑intelligence firm 51, described the SEC staff’s communication as “a big deal,” noting that Wall Street firms can now hold and deploy stablecoins without jeopardizing their capital ratios. Several broker‑dealers have already begun integrating stablecoin balances into their treasury operations, citing the new guidance as a catalyst for greater liquidity and faster settlement on distributed‑ledger platforms.
Context for the stablecoin market
The clarification arrives as stablecoins continue to solidify their role in the U.S. financial system. After peaking at just over $300 billion in December 2025, the market cap settled around $295 billion in early 2026, according to data from RWA.XYZ. The sector’s growth has largely been propelled by the 2025 GENIUS Stablecoin Act, signed into law by President Donald Trump, which provided a clearer regulatory framework for stablecoin issuers and helped expand adoption among institutional participants.
Nevertheless, not all policymakers share the same optimism. Federal Reserve Bank of Minneapolis President Neel Kashkari recently reiterated his skepticism, questioning the incremental value of stablecoins over existing payment rails such as Venmo, PayPal, or Zelle. The divergent views underscore an ongoing debate about the ultimate place of crypto‑linked assets in the broader financial ecosystem.
Analysis
The SEC’s decision signals a gradual alignment of traditional securities regulation with the operational realities of crypto markets. By applying a modest haircut rather than a full exclusion, the agency acknowledges the low‑risk nature of regulated payment stablecoins while preserving a conservative buffer to protect investors and market stability.
Key implications include:
- Capital efficiency: Broker‑dealers can now leverage stablecoin holdings to meet capital requirements, potentially reducing the need for cash or short‑term government securities on their balance sheets.
- Increased crypto activity: With capital constraints eased, firms are more likely to expand services such as tokenized‑security trading, custody, and settlement on blockchain platforms.
- Regulatory precedent: The guidance may set a benchmark for how other crypto‑related assets—such as decentralized finance (DeFi) tokens or wrapped securities—are treated under capital rules.
- Risk management: The 2 percent haircut offers a modest safety margin, reflecting the SEC’s intent to balance innovation with prudential oversight.
Key takeaways
- SEC staff now permits a 2 % haircut on stablecoins for broker‑dealer net‑capital calculations.
- Commissioner Hester Peirce supports the move, noting that a full haircut would be overly punitive.
- Industry leaders view the guidance as a catalyst for broader stablecoin use on Wall Street.
- Stablecoin market cap remains near $295 billion, buoyed by recent legislative clarity.
- The decision bridges traditional securities regulation and emerging blockchain‑based finance, though some officials remain skeptical of stablecoins’ added value.
The clarification removes a long‑standing source of regulatory uncertainty and positions stablecoins as a more integral component of the U.S. securities industry’s liquidity toolkit. As broker‑dealers begin to incorporate these digital cash equivalents into their capital structures, the SEC’s measured approach may serve as a template for future crypto‑asset regulatory frameworks.
Source: https://cointelegraph.com/news/sec-broker-dealer-2-haircut-stablecoins?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
