Circle wants SEC to erase a costly Wall Street rule holding stablecoins back
Summary
Circle asked the SEC to treat qualifying, GENIUS Act-compliant payment stablecoins as cash across securities markets. Its proposals cover fundraising rules, broker-dealer capital calculations and customer reserve accounts, potentially allowing firms to use stablecoins such as USDC more broadly. Circle also seeks to remove the current 2% capital haircut on qualifying stablecoin holdings. The requests go beyond existing rules: SEC recognition would be needed, and the GENIUS Act framework is scheduled to take effect in 2027. Any institutional benefit would depend on regulatory approval and firms’ stablecoin holdings.
