The U.S. Securities and Exchange Commission (SEC) released new guidance on February 20, 2026, from its Division of Trading and Markets. This FAQ clarifies how broker-dealers can handle certain stablecoins under customer protection rules. It allows firms to apply a 2% haircut to proprietary positions in qualifying stablecoins.
A haircut reduces the value of an asset when used as collateral to account for risk. Previously, some brokers applied a 100% haircut to stablecoins, making them expensive or impractical to hold. The new approach treats stablecoins more favourably by limiting the deduction to just 2%. This aligns them closely with low-risk assets, such as money market funds.
SEC Commissioner Hester Peirce welcomed the guidance in her statement. She highlighted that stablecoins are vital for transactions on blockchain networks. According to her, using stablecoins enables broker-dealers to expand into more activities involving tokenised securities and other crypto assets.
The guidance is seen as a positive step toward merging digital assets with traditional finance. Experts note that it removes major barriers for institutional adoption. Stablecoins can now function more like money market funds, which hold similar assets such as U.S. Treasuries and short-term government securities. This change improves liquidity, speeds up settlements, and creates better on-ramps for institutions.
This FAQ is part of the SEC’s recent efforts to support the digital asset industry. Over the past year, the agency has formed a crypto task force, launched “Project Crypto” to update rules, and planned innovation exemptions for tokenisation. It also aligns with the implementation of the new GENIUS law, which establishes a federal framework for stablecoins.
The White House appears determined to keep the parties at the table “until a deal is made.” No date has been set for the next meeting, but sources indicate the ball is now in the banks’ court.
Until a compromise is reached on yield, passage of broader legislation that divides jurisdiction between the CFTC and SEC and sets new regulatory standards remains stalled.
