SEC Adjusts Regulatory Stance: Stablecoins Can Be Counted as Regulatory Capital

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The U.S. SEC has reduced regulatory uncertainty by permitting broker-dealers to count stablecoin holdings as regulatory capital. This update to its FAQs on financial responsibility lowers compliance risks for firms navigating the regulatory crackdown. Cody Carbone of the Digital Chamber of Commerce called the move a step toward clarity. Stablecoins are now treated like money market funds on balance sheets. Previously, some firms excluded them entirely, penalizing such holdings. Ethena Labs’ Larry Florio noted the change impacts major players from Robinhood to Goldman Sachs. SEC Commissioner Hester Peirce said the shift supports broader crypto asset activities and could lead to rule changes for payment stablecoins.

BlockBeats report: On February 21, this week, the SEC made minor adjustments to its Frequently Asked Questions document on Broker-Dealer Financial Responsibility, allowing SEC-regulated broker-dealers to count held stablecoins as part of their regulatory capital.

“This is not a new rule, but it reduces uncertainty for institutions seeking to operate in compliance with existing securities laws,” said Cody Carbone, CEO of the Digital Chamber.

Tonya Evans, head of a cryptocurrency education institution and board member of Digital Currency Group, posted on X: “This means stablecoins are now treated on corporate balance sheets the same as money market funds. Previously, some broker-dealers assigned a zero value to stablecoin holdings in capital calculations, making holding them a financial penalty—this situation is now over.”

In the past, stricter SEC regulations made it difficult for registered broker-dealers to custody tokenized securities or act as intermediaries. Larry Florio, Vice President and Associate General Counsel at Ethena Labs, explained on LinkedIn: “Everything, from Robinhood to Goldman Sachs, relies on these calculations.” Stablecoins have now become operating capital.

Hester Peirce, SEC Commissioner and head of the Crypto Task Force, issued a statement saying that using stablecoins "will enable broker-dealers to participate in a broader range of tokenized securities and other crypto asset activities," and indicated that she is considering how to revise existing rules to accommodate payment stablecoins.

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