SEC Approves 98% Capital Value for USDC and USDT: Major Win for Stablecoin Adoption

The U.S. Securities and Exchange Commission has updated rules allowing broker-dealers to count USDC and USDT at 98 percent of book value toward capital requirements, slashing the prior 100 percent haircut. This pivotal shift, highlighted in Pawnie's daily Web3 recap, eases longstanding barriers for traditional finance firms embracing stablecoins. Institutional liquidity now flows freer into crypto rails.

Previously, stablecoins tallied as zero toward net capital, crippling broker-dealer holdings despite their dollar pegs and liquidity. Now, $100 million in qualifying tokens like Circle's USDC or Tether's USDT counts as $98 million, mirroring money market funds. Binance Square reports this revision in SEC's broker-dealer FAQs, with Commissioner Hester Peirce praising enhanced efficiency. Phemex and BingX coverage details the 2 percent haircut on payment stablecoins, unlocking tokenized securities and RWA platforms. Aixbt on X calls it a barrier evaporation, eyeing USDC's $74.5 billion supply growth. Pawnie's recap ties it to broader positives like Bitcoin ETF inflows and CME 24/7 futures. This aligns stablecoins with TradFi assets, spurring DeFi integration via Morpho ($658 million RWA deposits) and Ondo. Prediction markets surging to $9 billion volume underscore maturing infrastructure, per the recap's macro notes.

Fintech experts celebrate as this bridges TradFi-crypto divides, slashing capital costs for institutions. Broker-dealers gain flexibility for payments, custody, and tokenization, potentially ballooning stablecoin usage. Expect accelerated RWA tokenization and on-chain treasury ops, fortifying crypto against volatility.

The SEC's nod marks crypto's compliance maturation, paving regulatory clarity for 2026 growth. Fintech players should position for stablecoin rails in portfolios. This green light heralds deeper Wall Street embrace of blockchain finance.

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