SEC Takes Step Towards Integrating Digital Assets with Stablecoin Discount Rule

The U.S. Securities and Exchange Commission (SEC) has taken a crucial step towards integrating digital assets into the mainstream financial system. On February 19, the SEC's Division of Trading and Markets released a new FAQ clarifying how broker-dealers should handle payment-based stablecoins. According to the FAQ, broker-dealers can now trade stablecoins at a 2% discount instead of the previously punitive 100% discount.

This change is significant because it allows regulated intermediaries to hold and trade stablecoins without incurring hefty capital penalties. The SEC's Cryptocurrency Working Group chair, Hester Peirce, stated that this change will enable brokers to participate in the tokenized securities market, facilitate the creation of physical exchange-traded products (ETPs), and provide integrated cryptocurrency and securities services.