SEC Adjusts Regulatory Stance: Broker-Dealers Can Include Stablecoin Holdings in Regulatory Capital

BlockBeats News, February 21st, This week, the SEC made minor adjustments to its "Broker-Dealer Financial Responsibility" FAQ document, allowing SEC-regulated broker-dealer operators to now consider held stablecoins as part of regulatory capital.

"This is not a new rule, but it has reduced uncertainty for institutions wishing to operate in compliance with current securities laws," said Digital Chamber of Commerce CEO Cody Carbone.

Head of a crypto education institution and board member of Digital Currency Group, Tonya Evans, wrote on Platform X: "This means that stablecoins are now treated on the company's balance sheet the same way as money market funds. Previously, some broker-dealers would zero out their stablecoin holdings in capital calculations, and holding them was a financial penalty - this situation has now ended."

Previously, stricter SEC restrictions made it difficult for these registered broker-dealers to custody tokenized securities or act as intermediaries. Larry Florio, Deputy General Counsel at Ethena Labs, explained on LinkedIn: "From Robinhood to Goldman Sachs, everything depends on these calculations." Stablecoins have now become working capital.

SEC Commissioner and head of the "Crypto Mom" Working Group, Hester Peirce, released a statement stating that using stablecoins "will enable broker-dealers to participate in a broader range of tokenized securities and other crypto asset businesses," and expressed willingness to consider amending existing rules to accommodate payment-type stablecoins.