| Key Points: – SEC permits 2% haircut on qualifying payment stablecoins for broker-dealers. – Replaces 100% deduction, reducing balance-sheet friction while preserving prudential capital. – RLUSD may see increased institutional use for settlement, collateral, tokenization workflows. |
As reported by Coindoo, U.S. broker-dealers may now apply a 2% haircut to proprietary positions in certain “payment stablecoins” when computing net capital under Exchange Act Rule 15c3-1. The shift replaces the de facto 100% deduction some firms used, easing balance-sheet frictions while preserving a prudential capital charge.
The staff guidance applies only to qualifying payment stablecoins and does not amount to formal rulemaking. As reported by CoinGape, Ripple RLUSD could see greater institutional consideration under the clarified treatment, particularly for settlement, collateral, and tokenized-asset workflows.
How the 2% haircut changes net capital under Exchange Act Rule 15c3-1
Rule 15c3-1 requires broker-dealers to compute net capital after applying standardized “haircuts” to proprietary positions. A 2% haircut on eligible payment stablecoins materially reduces the capital deduction versus the 100% approach some firms previously used, increasing regulatory net capital and potential capacity to intermediate flows.
Consider a simplified example: a $100 million proprietary position in a qualifying payment stablecoin. Under a 100% haircut, the deduction is $100 million; under a 2% haircut, it is $2 million, an incremental $98 million improvement in net capital that could support market-making, client facilitation, or settlement activity.
In a public statement, Hester M. Peirce, Commissioner at the Securities and Exchange Commission, supported the staff’s approach and underscored the operational importance of stable-value tokens. “Stablecoins are essential to transacting on blockchain rails,” she said, adding that allowing a 2% haircut can make it more feasible for broker-dealers to engage in a broader range of business involving tokenized securities and other crypto assets.
Eligibility and safeguards for payment stablecoins under the guidance
The staff relief is conditioned on the instrument qualifying as a “payment stablecoin,” with high-quality, liquid reserves and reliable redemption at par. As reported by CoinDesk, RLUSD is structured with 1:1 backing and New York Department of Financial Services oversight, features aligned with the safeguards the market associates with payment stablecoins.
1:1 cash or short-term U.S. Treasury backing; clear redemption
Payment stablecoins expected to benefit from the 2% haircut typically maintain conservative reserves, such as cash and short-term U.S. Treasury securities, and provide clear, timely redemption at $1. These features help limit price slippage and liquidity risk in stress, which is the purpose of a modest, not punitive, capital charge.
For institutions assessing RLUSD within this framework, the focus is on ready convertibility to cash at par and day-to-day liquidity management. Reliable redemption mechanics are central to minimizing haircut add-ons and operational frictions in settlement chains.
Documentation to evidence payment-stablecoin status for capital calculations
Broker-dealers should maintain documentation substantiating payment-stablecoin status for capital purposes. This commonly includes reserve disclosures and attestations, redemption terms, legal analysis of issuer structure and custodial arrangements, and internal risk assessments covering liquidity, concentration, and counterparty exposure.
Books-and-records controls should link the documented characteristics to the haircut applied in the Rule 15c3-1 computation. Periodic reviews help ensure continued eligibility, especially if reserve composition, redemption practices, or issuer governance changes.
At the time of this writing, based on data from CoinMarketCap, RLUSD traded near $1.00 and was recently ranked around #45 with a live market capitalization of roughly $1.56 billion. These figures provide context only and do not imply future performance.
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