The U.S. Securities and Exchange Commission staff clarified that broker-dealers can apply a 2% haircut to stablecoin holdings, reversing previous uncertainty over a 100% discount. This allows firms to count most stablecoin value toward net capital requirements, facilitating broader blockchain-based activities. SEC Commissioner Hester Peirce called the move positive, while crypto intelligence CEO Marc Baumann termed it “a big deal.” The clarification comes amid a $295 billion stablecoin market, bolstered by the GENIUS bill signed by President Donald Trump. However, Federal Reserve Bank of Minneapolis President Neel Kashkari remains skeptical of stablecoins’ utility.
The U.S. Securities and Exchange Commission staff clarified that broker-dealers can apply a 2% “haircut” to their stablecoin holdings without objection. Previously, firms were uncertain whether to apply a 100% haircut, which would not count tokens toward net capital under existing regulations.
The clarification came in a posting by the staff of the SEC’s Division of Trading and Markets as frequently asked questions. SEC Commissioner Hester Peirce stated that “a 100% haircut would be unnecessarily punitive given the underlying reserve assets that back payment stablecoins.”
For example, holding $100 million in stablecoins allows counting $98 million toward net capital requirements after the 2% haircut. Peirce celebrated the clarification, saying “Stablecoins are essential to transacting on blockchain rails.”
The move means broker-dealers can hold stablecoins without worrying about excess net capital requirements. They can treat the tokens similarly to money market funds, which hold low-risk cash equivalents.
Marc Baumann, CEO of crypto intelligence company 51, called the SEC staff communication “a big deal”. He added that “Wall Street can now actually hold and use stablecoins without destroying their capital ratios.”
The stablecoin market capitalization recently fell by about $6 billion from a December 2025 peak of over $300 billion. However, the market still has a $295 billion market cap, which has steadily grown since 2023, according to data from RWA.XYZ.
United States President Donald Trump signed the GENIUS stablecoin bill into law in July 2025, a landmark moment for the crypto industry. The stablecoin market capitalization was just north of $252 billion at the time of signing and surged following the passage of the bill.
Despite this, Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, maintains that stablecoins and crypto have no real use cases. Kashkari said on Thursday, “I could send any one of you $5 with Venmo, or PayPal, or Zelle, so what is it that this magical stablecoin can do?”
