Author / Tonya M. Evans
Translation / Odaily Planet Daily Golem
On February 19, the U.S. Securities and Exchange Commission (SEC) Division of Trading and Markets released a new FAQ clarifying how broker-dealers should handle payment stablecoins under the net capital rule. Shortly thereafter, SEC Cryptocurrency Working Group Chair Hester Peirce issued a statement titled “A 2% Discount Is Enough.”
Peirce stated that if broker-dealers apply a “2% discount” instead of a punitive 100% discount to their own holdings of qualifying payment stablecoins when calculating net capital, SEC staff would not object.
While this may sound somewhat obscure, this accounting adjustment could be one of the most significant steps taken since early 2025, when the SEC began softening its stance on cryptocurrencies, to integrate digital assets into the mainstream financial system.
Minimum Net Capital and Discount
To understand the implications, we first need to grasp what “discount” means in the context of broker-dealers.
According to Rule 15c3-1 of the Securities Exchange Act, broker-dealers must maintain a minimum net capital, or more precisely, a liquidity buffer to protect clients if the firm encounters financial difficulties. When calculating this buffer, the firm must apply “asset impairments” to its on-balance-sheet assets, reducing their value to reflect risk. As a result, higher-risk or more volatile assets are subject to larger discounts, while cash is not.
Previously, some broker-dealers applied a 100% discount to stablecoins, meaning these holdings were entirely excluded from their capital calculations. This resulted in prohibitively high costs for holding stablecoins, making it financially unsustainable for regulated intermediaries.
Now, a 2% discount fundamentally changes this approach, placing payment stablecoins on equal footing with holdings of similar underlying assets—such as U.S. Treasuries, cash, and short-term government bonds—like money market funds.
As Peirce pointed out, under the GENIUS Act, the reserve requirements for stablecoin issuers are actually more stringent than the “qualified securities” requirements for registered money market funds (including government money funds). In her view, considering the actual backing assets of these tools, a 100% discount is overly harsh.
This is crucial because stablecoins are the “pillars” of on-chain trading. They are the means by which value flows on the blockchain and serve as a prudent engine for facilitating trading, settlement, and payments.
If broker-dealers cannot hold these tokens without depleting their capital positions, they cannot effectively participate in the tokenized securities markets, cannot promote the creation of physically settled exchange-traded products (ETPs), and cannot provide the institutional integration of cryptocurrencies and securities that is increasingly in demand.
The “2% Discount” Statement Comes at the Right Time
The timing of the “2% discount” announcement is critical.
The GENIUS Act, signed into law by President Trump on July 18, 2025, established the first comprehensive federal framework for payment stablecoins. The law sets reserve requirements, licensing procedures, and regulatory mechanisms for stablecoin issuers, placing them under a regulatory framework that distinguishes payment stablecoins from other digital assets.
The Federal Deposit Insurance Corporation (FDIC) is currently implementing application procedures for depository institutions issuing payment stablecoins through their subsidiaries. The Office of the Comptroller of the Currency (OCC) is also developing its own framework. In short, federal regulators are racing to finalize key implementation details before the July 2026 deadline.
Peirce’s statement and the accompanying FAQ effectively bridge the gap between the legislative framework of the GENIUS Act and the SEC’s own rulebook.
The FAQ’s definition of “payment stablecoins” is intentionally forward-looking: before the GENIUS Act takes effect, it relies on existing state-level standards, such as state money transfer licenses, compliance with reserve requirements specified in the law, and monthly attestations by certified public accounting firms. After the law’s enactment, this definition will shift to the standards set by the law itself.
This dual-track approach means broker-dealers can start treating stablecoins as legitimate trading tools even before the full implementation of the GENIUS Act.
Peirce also noted that the staff’s guidance is just the beginning. She invited market participants to provide feedback on how to formally amend Rule 15c3-1 to incorporate payment stablecoins and sought input on other SEC rules that may need updating. This public consultation indicates that the commission is considering more than just a one-off FAQ—it aims to systematically integrate stablecoins into its regulatory framework.
Policies That Enhance Regulatory Precision
Since the formation of the Cryptocurrency Working Group in January 2025 under Acting Chair Mark Uyeda, the SEC has been systematically moving away from the enforcement-heavy approach of former Chair Gary Gensler.
For example, the SEC issued guidance on broker-dealer custody of crypto assets, clarifying that crypto securities do not need to be held in physical form to meet control requirements, allowing broker-dealers to assist in the creation and redemption of physical ETPs, and explaining how alternative trading systems support crypto trading pairs.
Additionally, the FAQ page—including today’s stablecoin guidance—has evolved into a comprehensive resource covering everything from transfer agent obligations to the Securities Investor Protection Corporation (SIPC)’s protections (or lack thereof) for non-securities crypto assets. The practical impact on traditional financial services is significant:
- Banks and broker-dealers evaluating entry into digital assets can now better understand how their stablecoin holdings will be treated for capital purposes.
- Firms previously hesitant due to the operational costs of maintaining large positions (ultimately netting to zero on the balance sheet) can reconsider.
- Custodians, clearinghouses, and ATS operators exploring tokenized securities settlement now know that settlement assets (stablecoins) will not be viewed as regulatory burdens.
For ordinary investors, especially those historically overlooked by traditional finance, the downstream effects are equally important. The IMF has noted that stablecoins have demonstrated utility in cross-border payments, emerging market savings tools, and broader financial inclusion.
When regulated intermediaries can hold and trade stablecoins without facing hefty capital penalties, more such services can be offered through trusted, regulated channels rather than riskier, unregulated offshore platforms.
Ongoing Frictions Between Federal and State Regulations
Of course, all this is not happening in isolation—federal and state regulators continue to have frictions. The implementation timeline for the GENIUS Act is very tight. State regulators must complete their approval frameworks by July 2026.
Issues raised by state officials like New York Attorney General Letitia James regarding consumer fraud protections remain unresolved. Interactions between federal and state regulation will inevitably generate conflicts. Moreover, broader legislative efforts to clarify which digital assets are securities versus commodities are still pending in the Senate.
Therefore, that 2% discount, seemingly minor or opaque, carries deeper significance: federal securities regulators are actively adjusting existing rules to bring stablecoins into their scope as functional financial instruments, not just peripheral assets.
Whether these adjustments can keep pace with market developments, and whether the GENIUS Act’s promises will be fulfilled, remains to be seen. But in the shift from regulatory hostility to integration, it is often these technical, less visible efforts that determine whether policy can be translated into practice.
