The U.S. Securities and Exchange Commission will permit broker-dealers to apply a 2% haircut to certain proprietary stablecoin positions. The shift lowers capital friction and moves dollar-backed tokens closer to treatment historically reserved for money market instruments.
In guidance issued Thursday, the SEC’s Division of Trading and Markets said staff would not object if broker-dealers apply a 2% haircut under the customer protection rule. Haircuts represent a risk buffer applied to assets used as collateral. Previously, some brokers imposed a 100% haircut on stablecoins, effectively making them unusable for balance sheet purposes, according to fintech strategist Tonya Evans.
Does A 2% Haircut Put Stablecoins On Par With Money Funds?
Evans wrote in Forbes that a 2% haircut “changes that calculus entirely,” placing payment stablecoins closer to money market funds, which hold U.S. Treasuries, cash, and short-term government securities. Stablecoins backed 1:1 by similar reserve assets now receive comparable regulatory treatment in this narrow context.
SEC Commissioner Hester Peirce said the update could broaden broker activity in tokenized markets.
“Stablecoins are essential to transacting on blockchain rails,” she said, adding that their use may enable broker-dealers to engage in a wider range of business tied to tokenized securities and crypto assets.
Former Avalanche COO Luigi D’Onorio DeMeo described the move as removing “a major friction point.”
Pretty big update from @HesterPeirce and the SEC today. Stablecoins can now be treated similar to money-market funds.
— Luigi D'Onorio DeMeo (@luigidemeo) February 20, 2026
TLDR: Broker-dealers can now apply only a 2% haircut on proprietary positions, instead of the conservative 100% haircut many were using out of caution.
Why… pic.twitter.com/m0U00bjoPf
The guidance follows a series of SEC initiatives, including the formation of a crypto task force and the launch of “Project Crypto” to modernize digital asset rules. Federal agencies are also implementing the GENIUS Act, which established a U.S. regulatory framework for stablecoins last year. Could this capital treatment accelerate institutional settlement activity on blockchain infrastructure?
The immediate impact will depend on how quickly broker-dealers adjust internal capital models and compliance systems. Market participants are now watching whether the SEC extends similar clarity to custody and tokenized securities frameworks.
