SEC Allows Broker-Dealers to Treat Eligible USD Stablecoins as Cash Equivalents with 2% Haircut
The U.S. Securities and Exchange Commission’s Division of Trading and Markets issued staff guidance (dated Feb 19, 2026) clarifying that eligible USD-pegged payment stablecoins may be treated as having a “ready market” for the purpose of the Net Capital Rule (Rule 15c3-1). Broker-dealers may apply a 2% haircut to the market value of the greater of long or short proprietary positions in such stablecoins when calculating minimum net capital. The guidance appears in an updated FAQ on crypto asset activities and is intended to resolve uncertainty about capital treatment for payment stablecoins. The staff emphasized the guidance reflects Division views, is not a Commission rule, and carries no independent legal force; broker-dealers remain responsible for compliance with federal securities laws. The update sits alongside other FAQ responses on custody and control under Rule 15c3-3 and signals continued regulatory engagement with digital assets.
Bullish
The guidance reduces regulatory uncertainty around stablecoins by allowing eligible USD-pegged payment stablecoins to be treated as cash equivalents for net capital calculations with a modest 2% haircut. That lowers capital costs and operational friction for broker-dealers holding proprietary stablecoin positions, making stablecoins more usable as liquidity and collateral. Historically, clearer regulatory treatment (e.g., custody or margin rules) tends to increase institutional participation and on‑ramp liquidity, which is bullish for stablecoin demand and for crypto markets generally. Short-term effects: improved sentiment and modest inflows into stablecoin-related desks and markets; possible tightening of stablecoin spreads and increased repo-style trades. Long-term effects: wider adoption of stablecoins in broker-dealer operations, greater use as collateral, and deeper market infrastructure—supporting trading volumes and price stability across crypto assets. Risks that temper the bullish view include the guidance’s non-binding status and potential future regulatory changes, which could limit the impact if firms remain cautious.