SEC makes quiet shift to brokers’ stablecoin holdings that may pack big results

The SEC Just Gave Broker-Dealers a Green Light on Stablecoins—Here’s Why It Matters

In a move that could quietly reshape how traditional finance interacts with crypto, the U.S. Securities and Exchange Commission has updated its guidance to allow broker-dealers to count stablecoin holdings as regulatory capital. The change, tucked into a tweak of the SEC’s “Broker Dealer Financial Responsibilities” FAQ, might look minor on paper—but in practice, it’s a seismic shift for the digital asset industry.

For years, broker-dealers regulated by the SEC have faced a catch-22 when it came to stablecoins. Holding dollar-pegged tokens like Circle’s USDC or Tether’s USDT was essentially a financial penalty, since these assets weren’t considered measurable against a firm’s capital tally. In other words, broker-dealers had to apply a 100% “haircut” to stablecoin holdings, meaning they couldn’t count them at all when calculating regulatory capital. This made it difficult for these firms to custody tokenized securities or act as intermediaries for crypto trading, limiting their ability to provide liquidity, aid settlement, and advance tokenized finance.

That all changed this week with the addition of a new question (No. 5) to the SEC’s FAQ. The answer? A 2% haircut. In practical terms, this means broker-dealers can now count 98% of their stablecoin holdings as regulatory capital. The move puts stablecoins on the same footing as other financial products, like money market funds, on a firm’s balance sheet.

“This is a big deal,” said Cody Carbone, CEO of the Digital Chamber. “While this guidance does not create new rules, it helps reduce uncertainty for firms seeking to operate compliantly under current securities laws.”

Tonya Evans, a former professor and crypto education entrepreneur, broke it down on social media: “Until today, some broker-dealers were zeroing out stablecoin holdings in their capital calculations. Holding them was a financial penalty. That’s over.” Evans, who also serves on the board of directors at Digital Currency Group, noted that the change means stablecoins are now treated like money market funds—a major upgrade in the eyes of the financial industry.

Larry Florio, deputy general counsel at Ethena Labs, explained the broader implications in a LinkedIn post: “Everywhere from Robinhood to Goldman Sachs run on these calculations. Stablecoins are now working capital.” In other words, this shift could open the door for more traditional finance players to integrate stablecoins into their operations, potentially accelerating the adoption of tokenized finance and crypto-based settlement systems.

SEC Commissioner Hester Peirce, who leads the agency’s Crypto Task Force, issued a statement supporting the change. She argued that using stablecoins “will make it feasible for broker-dealers to engage in a broader range of business activities relating to tokenized securities and other crypto assets.” Peirce also hinted at future regulatory considerations, saying she wants to explore how existing SEC rules “could be amended to account for payment stablecoins.”

However, there’s a catch: this guidance is informal, meaning it can be reversed as easily as it was issued. Unlike formal rules, which carry legal weight and protections, staff policies are more fluid and subject to change with new leadership at the SEC. This uncertainty underscores the crypto industry’s push for more permanent legislative solutions, such as the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which aims to set the government’s digital assets approach into law.

For now, though, the SEC’s move is a win for the crypto industry, signaling a more pragmatic and collaborative approach to regulation. By treating stablecoins as a legitimate form of working capital, the agency is paving the way for greater integration between traditional finance and the digital asset ecosystem. And while the change may seem technical, its implications are anything but—this could be the nudge broker-dealers need to fully embrace the future of finance.

Tags: SEC, stablecoins, regulatory capital, USDC, USDT, broker-dealers, tokenized securities, crypto regulation, Hester Peirce, Digital Chamber, Robinhood, Goldman Sachs, Ethena Labs, Tonya Evans, GENIUS Act, crypto adoption, financial innovation

Viral Sentences:
– “The SEC just gave stablecoins a seat at the regulatory table—and Wall Street is listening.”
– “Stablecoins are now working capital. The future of finance just got a lot more stable.”
– “This isn’t just a tweak—it’s a tectonic shift for crypto and traditional finance.”
– “From Robinhood to Goldman Sachs, broker-dealers can finally treat stablecoins like real money.”
– “The SEC’s informal guidance could be the spark that ignites mainstream crypto adoption.”
– “Stablecoins are no longer a financial penalty—they’re a financial opportunity.”
– “Hester Peirce’s Crypto Task Force just delivered a win for the entire digital asset industry.”
– “This move could accelerate the tokenization of everything from stocks to real estate.”
– “The SEC’s 2% haircut is a game-changer for broker-dealers and crypto alike.”
– “The future of finance is stable, and the SEC just gave it its blessing.”,