The SEC just made a small edit that could have large consequences.

In new guidance, the agency’s Division of Trading and Markets said it would not object if broker dealers apply a 2% haircut to proprietary holdings of payment stablecoins when calculating net capital. That is a sharp shift from prior practice, where some firms effectively applied a 100% haircut, meaning stablecoins did not count toward regulatory capital at all.

A haircut reflects risk. More volatile assets receive steeper discounts. By allowing a 2% haircut, the SEC is placing payment stablecoins closer to the treatment of money market funds, which hold similar assets such as Treasuries and cash equivalents.

This story is an excerpt from the Unchained Daily newsletter.

Commissioner Hester Peirce welcomed the move, calling stablecoins “essential to transacting on blockchain rails” and saying their use could allow broker dealers to expand into tokenized securities and other crypto activities.

The guidance does not rewrite the rulebook, but it reduces friction. Stablecoins can now function as working capital on broker dealer balance sheets. For firms exploring tokenized markets, that changes the economics meaningfully.