SEC Official Proposes 2% Capital Haircut for Payment Stablecoins and Pushes for Regulatory Revision

Background and Proposal

SEC Commissioner Hester Peirce recently proposed revising Rule 15c3-1 to provide clearer regulatory treatment for payment stablecoins. This initiative aims to offer market participants a more defined framework for compliance and risk management.

Key Regulatory Points

• The SEC will not object if broker-dealers apply a 2% capital haircut to payment stablecoins they hold when calculating net capital.
• Prior to the enactment of the GENIUS Act, payment stablecoins must meet specific conditions, such as being USD-denominated, issued by state-regulated institutions, and supported by adequate reserves, along with disclosing redemption policies and providing monthly attestation reports.
• Once the Act becomes law, stablecoins and their issuers must comply with the definitions and requirements outlined in the GENIUS Act.

Looking Ahead

This proposal marks a significant step toward modernizing digital asset regulation at the SEC. By introducing clear standards, the agency aims to support innovation while ensuring market integrity and investor protection.