BlockBeats News, February 21st. The U.S. Securities and Exchange Commission (SEC) updated the “Rule 15c3-1” (Net Capital Rule) Q&A on its website on February 19th, clarifying the haircut treatment for broker-dealers when calculating net capital for proprietary payment stablecoin positions.
The answer indicates that if a broker-dealer designates its proprietary holdings of payment stablecoins as having a “ready market” under “Rule 15c3-1”, then when calculating net capital, a 2% haircut should be taken on the larger of the long or short proprietary position’s market value. Under this treatment, SEC staff will not object.
SEC Crypto Czar Hester Peirce promptly issued a statement in support of this treatment. She emphasized that stablecoins are a critical piece of blockchain payment and trading infrastructure, and appropriate capital treatment helps broker-dealers better utilize stablecoins in custody, settlement, and tokenized securities-related activities. She believes that compared to a 100% haircut that some brokers may prudently apply, a 2% haircut is more aligned with the reserves backing payment stablecoins, which are primarily composed of U.S. dollars and high-quality short-term assets.
