SEC Cuts Stablecoin Haircut to 2%, But What Does it Mean?

The US Securities and Exchange Commission (SEC) has paved the way for Wall Street to integrate stablecoins into traditional finance. On February 19, the financial regulator issued guidance allowing broker-dealers to apply a 2% "haircut" to positions in payment stablecoins. A haircut is the percentage of an asset's value that a financial institution cannot count toward its deployable capital, acting as a customer-protection buffer against market risk. SEC Stablecoin Pivot Pressures Brokers to Build Crypto ...