US SEC eases net capital rules for broker-dealer stablecoins

The U.S. Securities and Exchange Commission (SEC) has effectively eased its net capital requirements for stablecoins held by broker-dealers, Forbes reported. The SEC announced that broker-dealers holding qualified payment stablecoins that meet certain criteria will now be subject to a 2% haircut when calculating their net capital. A haircut is a conservative valuation method that reduces an asset's stated value by a certain percentage. Previously, many stablecoins faced a 100% haircut, meaning they were not recognized as capital at all. The new rule allows 98% of the value of these qualified stablecoins to be counted toward a firm's capital. Forbes noted that the 2% haircut places these payment stablecoins on par with money market funds that hold underlying assets such as U.S. Treasury bonds and other cash equivalents.