The post Stablecoins Clear Major Regulatory Barrier as SEC Revises Capital Rules appeared on BitcoinEthereumNews.com.

TLDR: The SEC reduced the stablecoin capital haircut from 100% to 2%, in line with money market fund treatment.  Broker-dealers previously needed $2 million in capital reserves just to hold $1 million in stablecoins.  The rule change allows regulated firms to use stablecoins for settlement, collateral, and tokenized assets.  Lower capital requirements are expected to drive broader institutional demand and stablecoin adoption in 2026. Stablecoins have cleared a major regulatory hurdle in 2026. The U.S. Securities and Exchange Commission revised capital treatment rules for broker-dealers holding stablecoins. Previously, firms faced a 100% haircut on stablecoin holdings, making institutional use prohibitively costly. The SEC now aligns stablecoin treatment with money market funds at a 2% haircut. This change removes a long-standing barrier for regulated institutions looking to adopt stablecoins in daily operations. SEC Cuts Capital Burden on Broker-Dealers Under the old framework, broker-dealers faced a steep capital penalty for holding stablecoins. A 100% haircut meant every dollar in stablecoins required an equal dollar set aside. A firm holding $1 million in stablecoins effectively locked up $2 million in balance sheet capacity. That structure made stablecoins costly and unattractive for regulated financial institutions. This arrangement gave Wall Street little reason to integrate stablecoins into daily operations. The capital cost far outweighed any operational benefit stablecoins could realistically offer. Consequently, traditional finance largely stayed away from stablecoin use under these rules. Regulated broker-dealers could not incorporate them without visibly straining their capital ratios. Crypto market commentary account Bull Theory addressed the change directly in a post. “The SEC has changed the rules, which forced Wall Street to need $2 million in capital to hold $1 million in stablecoins,” the account stated. CRYPTO MARKET JUST SECURED ITS BIGGEST WIN OF 2026 The SEC has changed the rules, which forced Wall Street to need $2…

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Filed under: News - @ February 21, 2026 7:57 pm