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SEC (U.S. securities regulator) Staff Clarifies 2% Stablecoin (crypto pegged to fiat) Haircut Counts for Net Capital

According to an SEC (U.S. securities regulator) staff FAQ, broker-dealers (securities brokerage firms) may apply a 2% haircut (regulatory capital discount) to stablecoin holdings for net capital calculations, allowing inclusion in regulatory capital.

Summary

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Terms & Concepts
  • Stablecoin: A cryptocurrency designed to maintain a stable value, typically pegged to fiat currency like the U.S. dollar.
  • Net capital: A regulatory measure of a broker-dealer’s liquid financial resources used to ensure solvency and protect customers.
  • Haircut: A standard regulatory discount applied to asset values in capital calculations to account for risk and volatility.