SEC Clarifies Net Capital Rule for Payment Stablecoins

The Securities and Exchange Commission (SEC) has issued guidance on the treatment of payment stablecoins held by broker-dealers. According to the SEC's Division of Trading and Markets, broker-dealers can now treat payment stablecoins as liquid assets, similar to other near-cash assets like U.S. Treasury bonds or money market funds.

As a result, broker-dealers will be allowed to apply a 2% haircut when calculating their net capital, rather than the previously applied 100% haircut. This change is expected to accelerate the adoption of payment stablecoins by broker-dealers, particularly those involved in crypto asset transactions.