SEC Stablecoin Decision: Capital Requirement for Broker-Dealers Reduced to 2%

SEC Stablecoin Regulation The U.S.
Securities and Exchange Commission (SEC) has taken a strategic step for the cryptocurrency sector by relaxing the requirements for broker-dealers to hold stablecoins.
Under the new regulation, the capital ratio that institutions must set aside for stablecoins held on their balance sheets has been reduced from 100% to 2%.
A New Era for Institutional Finance Jon Paul Richardson, CEO of the crypto company Exodus, stated that this change is a critical turning point for the integration of stablecoins into the world of institutional finance.
Richardson explained that under the previous practice, an institution holding $1 million in stablecoins was forced to block the same amount of capital, making its use economically inefficient.
With the capital ratio being lowered to 2%, stablecoins have achieved a status similar to money market funds.
This situation allows digital assets to become more compatible with traditional financial instruments.
Infrastructure-Oriented Transformation The primary innovations brought by the change include the ability for broker-dealers to conduct transactions without straining their balance sheets and the facilitation of on-chain settlement for tokenized treasury bills and stocks.
Richardson noted that while the general market focus has shifted toward ETF approvals or political developments, the real transformation is occurring on the infrastructure side.
Describing the process as "the most positive bear market I've seen," Richardson emphasized that the easing of the capital burden will create competitive pressure on large broker-dealers, and those who adapt quickly to this technology will gain an advantage.