The SEC has introduced a pragmatic shift allowing broker‑dealers to recognise payment stablecoins with a 2% haircut under capital rules, signalling a cautious move towards integrating digital dollars into mainstream finance.
The U.S. Securities and Exchange Commission has taken a concrete step to integrate payment stablecoins into the regulated broker‑dealer framework, signalling a shift from blanket exclusion towards conditional acceptance. In guidance published by the Division of Trading and Markets on 19–20 February 2026, staff said they would not object if broker‑dealers applied a 2% haircut to proprietary positions in qualifying payment stablecoins when calculating net capital under Exchange Act Rule 15c3‑1. According to the SEC, that treatment reflects the stablecoins’ backing by U.S. dollars and high‑quality short‑term assets and recognises their role as cash‑equivalent instruments on blockchain rails.
For firms that previously treated stablecoin holdings as worth nothing for regulatory capital purposes , effectively applying a 100% haircut , the new approach permits recognition of roughly 98% of a qualifying position’s market value. The SEC’s FAQ also characterises payment stablecoins as having a “ready market” for the purposes of the net capital rule, enabling their use in settlement, custody and short‑term liquidity functions tied to tokenised securities and other digital‑asset business lines. However, the guidance makes clear the haircut must be applied to the greater of the long or short proprietary position, and does not allow firms to net offsetting positions for the purpose of this adjustment , a detail that could materially affect firms with offsetting exposures.
Commissioner Hester M. Peirce, who chairs the agency’s Crypto Task Force, set out the staff view in a statement titled “Cutting by Two Would Do,” endorsing the 2% haircut as consistent with reserve practices and inviting market participants to submit feedback on potential formal amendments to Rule 15c3‑1. According to the statement, the SEC leadership is interested in exploring how the rule might be updated to more permanently accommodate payment stablecoins while protecting customer‑protection objectives.
Market analysts and legal commentators have framed the change as pragmatic rather than sweeping. Industry commentary notes the adjustment aligns stablecoins with other low‑risk short‑term instruments, such as money‑market funds, and could unlock additional institutional liquidity for tokenised settlement and custody services. The shift follows a series of policy discussions in February that examined the roles of banks in issuance and custody, how yield on digital dollars should be treated, and the capital frameworks needed to contain systemic risk as digital‑asset activity grows.
Nevertheless, the guidance is cautious. It applies specifically to qualifying payment stablecoins that are predominantly dollar‑backed by high‑quality short‑term assets and limits recognition to proprietary positions under broker‑dealer capital rules. The SEC framed the move as an interim, staff‑level interpretation rather than a codified rule change, and explicitly sought input from firms and other stakeholders on broader regulatory changes that would be required for SEC‑registered entities to rely on stablecoins more extensively.
Industry response has been broadly favourable, with observers saying the clarification should encourage greater use of stablecoins by broker‑dealers and trading platforms, improve settlement efficiency and foster new products built on tokenised infrastructure. Legal advisories and trade publications, however, have emphasised that the non‑netting requirement and the narrow scope of the FAQ mean firms must still design operational and risk frameworks carefully before reallocating material capital to stablecoin positions.
Taken together, the SEC’s guidance marks a tactical move toward integrating digital dollars into mainstream finance while maintaining guardrails intended to protect investors and market integrity. By permitting limited capital recognition rather than full acceptance, regulators have opened a pathway for incremental adoption of stablecoins within regulated intermediaries while signalling that any broader accommodation will require further rulemaking and industry input.
- https://www.coingabbar.com/en/crypto-currency-news/us-sec-stablecoin-capital-rule-update – Please view link – unable to able to access data
- https://www.sec.gov/newsroom/speeches-statements/peirce-stablecoin-021926-cutting-two-would-do – On February 19, 2026, SEC Commissioner Hester M. Peirce issued a statement titled ‘Cutting by Two Would Do’, addressing the SEC’s guidance on payment stablecoins. She highlighted that the SEC staff would not object if broker-dealers applied a 2% haircut to proprietary positions in payment stablecoins when calculating net capital, aligning with the reserves backing these stablecoins, primarily U.S. dollars and high-quality short-term assets. Peirce emphasized the importance of stablecoins in blockchain transactions and expressed interest in exploring updates to Rule 15c3-1 to formally account for payment stablecoins, inviting feedback from market participants on potential rule adjustments and broader regulatory changes for SEC-registered entities using these assets.
- https://www.insightswire.com/news/18428/sec-guidance-2pct-haircut-broker-dealer-stablecoins – On February 20, 2026, the SEC’s Division of Trading and Markets issued an FAQ clarifying that broker-dealers can apply a 2% haircut to their own stablecoin holdings used for collateral and capital calculations. This guidance addresses the customer-protection rule, allowing firms to account for tokenized cash equivalents. Previously, some broker-dealers applied a 100% haircut to stablecoin holdings, effectively excluding them from capital calculations. The SEC’s move aims to facilitate the use of stablecoins in settlement, custody, and short-term liquidity functions, aligning with the reserves backing these stablecoins, primarily U.S. dollars and high-quality short-term assets.
- https://www.kucoin.com/news/articles/sec-regulatory-shift-broker-dealers-holding-stablecoins-institutional-crypto-significance – On February 19, 2026, the SEC updated its Broker-Dealer Financial Responsibilities FAQ, allowing broker-dealers to apply a 2% haircut on proprietary positions in qualifying payment stablecoins when calculating net capital under Exchange Act Rule 15c3-1. This adjustment aligns stablecoins with low-risk money market funds, enabling broker-dealers to count 98% of qualifying stablecoin value toward net capital requirements. The change is expected to unlock significant institutional liquidity, facilitate tokenized securities settlement and custody, and accelerate broader institutional cryptocurrency adoption in traditional finance.
- https://www.ledgerinsights.com/sec-sets-2-haircut-for-stablecoin-positions-but-no-netting-sting/ – On February 20, 2026, the SEC’s Division of Trading and Markets issued an FAQ stating that broker-dealers can apply a 2% haircut to proprietary positions in payment stablecoins when calculating net capital under Rule 15c3-1. This guidance grants payment stablecoins ‘ready market’ status, allowing broker-dealers to hold stablecoins as working capital for tokenized securities settlement. However, the FAQ specifies that the haircut applies to the greater of the long or short proprietary position, without netting, which could impact firms with offsetting positions.
- https://www.jdsupra.com/legalnews/sec-staff-issues-guidance-on-treatment-9717313/ – On February 19, 2026, the SEC’s Division of Trading and Markets issued an FAQ clarifying that broker-dealers can treat proprietary positions in payment stablecoins as having a ‘ready market’ under Rule 15c3-1 and apply a 2% haircut to the market value of the greater of the long or short proprietary position when calculating net capital. This guidance aims to facilitate the use of stablecoins in settlement, custody, and tokenized securities-related activities, aligning with the reserves backing these stablecoins, primarily U.S. dollars and high-quality short-term assets.
- https://www.forbes.com/sites/tonyaevans/2026/02/19/the-secs-2-haircut-on-stablecoins-is-a-bigger-deal-than-it-sounds/ – On February 19, 2026, the SEC’s Division of Trading and Markets issued an FAQ clarifying how broker-dealers should treat payment stablecoins under the net capital rule. Commissioner Hester Peirce, who chairs the agency’s Crypto Task Force, released an accompanying statement titled ‘Cutting by Two Would Do.’ Peirce explained that the SEC staff would not object if broker-dealers applied a 2% haircut rather than a punitive 100% haircut on proprietary positions in qualifying payment stablecoins when calculating net capital. This adjustment aligns with the reserves backing these stablecoins, primarily U.S. dollars and high-quality short-term assets, and is expected to facilitate the integration of stablecoins into traditional financial systems.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The SEC’s guidance on stablecoin capital treatment was issued on February 19, 2026. The earliest known publication date of similar content is February 20, 2026. The narrative appears original and timely, with no evidence of prior publication. However, the source is a niche publication, which may limit its reach and impact. Given the lack of earlier similar content, the freshness score is high, but the source’s niche nature slightly reduces the score.
Quotes check
Score:
7
Notes:
The article includes direct quotes from SEC Commissioner Hester M. Peirce’s statement titled “Cutting by Two Would Do,” dated February 19, 2026. These quotes are consistent with the original source. However, the article does not provide direct links to the original statement, making independent verification more challenging. While the quotes are accurate, the lack of direct sourcing slightly reduces the score.
Source reliability
Score:
5
Notes:
The article originates from a niche publication, which may not have the same editorial standards as major news organisations. Additionally, the article does not provide direct links to the original SEC statement, making independent verification more challenging. The lack of direct sourcing and the niche nature of the publication raise concerns about the source’s reliability.
Plausibility check
Score:
8
Notes:
The claims about the SEC’s guidance on stablecoin capital treatment align with information from other reputable sources, such as the SEC’s official website. The article provides specific details about the SEC’s FAQ and Commissioner Peirce’s statement, which are consistent with known facts. However, the lack of direct links to the original sources makes independent verification more challenging.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
While the article provides timely and plausible information about the SEC’s guidance on stablecoin capital treatment, the lack of direct links to original sources and the niche nature of the publication raise concerns about the reliability and independence of the information. These issues prevent the content from meeting our verification standards.