Lower haircut may accelerate stablecoin use in tokenized securities trading.
Ripple news moved to the forefront after the U.S. Securities and Exchange Commission signalled a major shift in its treatment of payment stablecoins. The agency confirmed it will not object if broker-dealers apply a 2% haircut to proprietary positions in qualifying payment stablecoins when calculating net capital.
The update reduces a key regulatory constraint that had limited how broker-dealers treated stablecoin holdings on their balance sheets. Market participants said the change could support deeper integration of stablecoins into traditional financial infrastructure.
In a public statement, SEC Commissioner Hester Peirce said staff from the Division of Trading and Markets would not object to broker-dealers applying a 2% haircut on proprietary positions in payment stablecoins. The haircut applies when firms calculate regulatory net capital requirements.
Previously, some broker-dealers applied a 100% haircut to payment stablecoin holdings. Under that treatment, firms could not count those assets as regulatory capital. Peirce described the 100% haircut as unnecessarily punitive. She pointed to the underlying reserve assets that back payment stablecoins.
She also noted that the 2% haircut aligns with the Commission’s approach to registered investment companies structured as money market funds. Those funds hold similar instruments to the reserve assets maintained by payment stablecoin issuers.
The guidance applies to payment stablecoins issued by state-regulated money transmitters, state-regulated trust companies, or national trust banks. The clarification remains in effect until the effective date of the GENIUS Act, scheduled for next year.
Ripple news coverage highlighted that RLUSD falls within the category of qualifying payment stablecoins under this framework.
Commissioner Peirce said stablecoins play an essential role in transactions conducted on blockchain rails. She added that the updated treatment would make it feasible for broker-dealers to engage in a broader range of activities tied to tokenized securities and other crypto assets.
The Ripple news comes as the SEC evaluates a regulatory pathway for tokenized securities. Earlier this week, SEC Chair Paul Atkins said the agency is considering a narrow exemption for trading tokenized securities on new platforms.
Atkins described the latest stablecoin guidance as another step toward removing barriers and unlocking access to on-chain markets. He characterized it as a constructive development for firms seeking structured participation in blockchain-based financial activity.
Ripple news reports noted that the haircut adjustment could align with these broader efforts to establish a framework for tokenized asset trading.
Exodus Chief Executive Officer JP Richardson described the SEC’s decision as the most important regulatory development of the year. He said the change would allow broker-dealers to settle trades in stablecoins without undermining their balance sheets.
Richardson stated that tokenized treasuries, equities, bonds, and on-chain settlement models become economically viable under the updated capital treatment. He also stated that the guidance translates elements of the GENIUS Act’s legal structure into actionable compliance steps.
Similar observations were made by market expert Luigi DeMeo. He stated that the lower haircut is less restrictive to the introduction of stablecoins into traditional finance rails. He indicated potential enhancements in liquidity, settlement efficiency, and institutional accessibility.
Broker-dealers are already expanding the capabilities of stablecoins. Interactive Brokers, which allows funding brokerage accounts in stablecoins, was launched last month. The option allows customers to trade conventional securities using stablecoins.
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