You know what’s more powerful than a 1,000-page regulation? A two-page FAQ.

On February 19, the SEC’s Division of Trading and Markets quietly dropped guidance that slashes the capital charge on stablecoins from 100% to 2% for broker-dealers.

That’s the same haircut as money market funds. This makes stablecoins near-cash working capital and it might be the single most important regulatory shift for Wall Street in 2026. [RELEASE] [FAQs]

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What happened

The SEC issued an FAQ clarifying that broker-dealers can now apply a 2% capital haircut to qualifying payment stablecoins under Exchangule 15c3-1, the net capital rule that governs how much liquid capital Wall Street firms must hold. [RELEASE]

But there’s a catch: the “no-netting” sting. The 2% charge applies to the gross market value of the greater long or short position, preventing delta-neutral offsetting. To qualify, stablecoins must meet strict GENIUS Act criteria: U.S.-regulated issuers, 100% USD/T-bill backing, and monthly AICPA-standard attestations.

Zooming in: Under Rule 15c3-1 (Net Capital Rule), broker-dealers must apply risk-based “haircuts” (deductions) to balance sheet assets when computing regulatory net capital, ensuring liquidity buffers against potential losses. Previously, most stablecoins lacked “ready market” status, triggering a 100% haircut that excluded them entirely from capital calculations.