The U.S. Securities and Exchange Commission has reduced the haircut requirement for stablecoins held by broker-dealers to 2%, effectively treating compliant digital dollars on par with traditional money market funds.
—
SEC Chair Paul Atkins described the move as a positive step for the industry, signaling a broader regulatory shift toward integrating stablecoins into existing financial infrastructure.
The updated guidance, which aligns with the framework outlined in the pending GENIUS Act, lowers the capital charge that broker-dealers must set aside when holding positions in qualifying payment stablecoins.
Previously, higher haircut requirements made it costly for institutions to hold stablecoins on their balance sheets, creating a structural disadvantage compared to equivalent fiat instruments.
Loading tweet...
View Tweet
What the 2% Haircut Means in Practice
In securities regulation, a "haircut" refers to the percentage reduction applied to the value of an asset when calculating a firm's net capital. A lower haircut means the asset is considered less risky, requiring firms to hold less capital in reserve against it.
By dropping the stablecoin haircut to 2%, the SEC is effectively saying that compliant stablecoins carry a risk profile comparable to money market funds — a significant regulatory endorsement.
For broker-dealers and institutional market participants, this changes the economics of holding and transacting in stablecoins. Firms can now allocate more capital toward stablecoin-denominated activities without disproportionate reserve requirements eating into their operations.
Ripple's RLUSD Among Early Beneficiaries
The guidance provides a direct tailwind for payment stablecoins already operating in the U.S. market. Ripple's RLUSD is among the assets positioned to benefit, as the reduced haircut lowers the institutional friction associated with holding and trading the token.
According to CoinGape, the ruling gives RLUSD and similar compliant stablecoins a clearer path toward broader adoption among regulated financial entities.
ProShares' $17 Billion ETF Debut Adds Momentum
The regulatory shift arrives alongside a landmark product launch. ProShares' IQMM ETF, described as "stablecoin-ready," posted a record-breaking $17 billion trading debut.
Loading tweet...
View Tweet
Industry observers have pointed to the ETF as a sign that institutional infrastructure for stablecoin-adjacent products is scaling rapidly.
Industry experts view the ProShares IQMM ETF as a monumental step toward institutionalizing the crypto market. — BeInCrypto
The convergence of the SEC's reduced haircut guidance and the IQMM launch underscores a broader trend: regulated financial products are increasingly being built with stablecoin integration in mind, rather than treating digital dollars as an afterthought.
What to Watch
The GENIUS Act, which would establish a comprehensive federal framework for payment stablecoins, remains a key variable. The SEC's guidance appears to anticipate the bill's passage, but the legislation still faces a congressional path.
If enacted, it would formalize the regulatory treatment that the SEC is now previewing through guidance — potentially opening the door for even broader institutional participation in stablecoin markets.
Loading tweet...
View Tweet
For now, the 2% haircut rule represents the clearest signal yet from U.S. regulators that compliant stablecoins are being treated as legitimate instruments within the traditional financial system. How quickly broker-dealers adjust their strategies in response will be the next indicator to watch.
