SEC allows broker-dealers to apply 2 percent ‘haircut’ on payment stablecoins

On February 19, the SEC’s Division of Trading and Markets issued a new frequently asked question (FAQ) on the treatment of payment stablecoins under the broker-dealer net capital rule (Exchange Act Rule 15c3-1) to its list of FAQs related to digital asset activities and distributed ledger technology. The FAQ stated that the SEC staff would not object if broker-dealers applied a 2 percent “haircut” to proprietary positions in such assets when calculating net capital.... By: Orrick, Herrington & Sutcliffe LLP