# SEC Slashes Stablecoin Haircut to 2%, Leveling Field With TradFi

> The SEC reduced stablecoin haircut requirements to 2% for broker-dealers, treating compliant digital dollars on par with money market funds.

By Blockster Newsdesk · February 21, 2026

Canonical: https://blockster.com/sec-slashes-stablecoin-haircut-to-2-leveling-field-with-tradfi

_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._

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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](https://beincrypto.com/sec-new-stablecoins-ruling-for-broker-market/) on their balance sheets, creating a structural disadvantage compared to equivalent fiat instruments.

[Post from @coinbureau on X](https://twitter.com/coinbureau/status/2025012596852564093?s=20)

## 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](https://coingape.com/ripples-rlusd-gets-institutional-boost-as-sec-eases-stablecoin-rules-for-broker-dealers/), 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. ](https://update.10xresearch.com/p/17-billion-on-day-one-how-iqmm-could-supercharge-stablecoins-and-why-circle-stands-to-gain)

[Post from @10x\_Research on X](https://twitter.com/10x_Research/status/2025012595204522454?s=20)

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.

[Post from @therollupco on X](https://twitter.com/therollupco/status/2024238496542609824?s=20)

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.