Circle asks to cancel the stablecoin haircut. The SEC has the scissors.

Circle's 28 October policy post asks the SEC to treat qualifying payment stablecoins as cash under proposed crypto-offering rules and reduce their broker-dealer capital haircut from 2% to zero, subject to safeguards. The post describes comments submitted on 20 October; it is a request, not an approved change.

A haircut here is an accounting adjustment, not a fee charged to everyone spending USDC. SEC staff guidance added on 19 February says it would not object to a broker-dealer applying a 2% reduction to the market value of qualifying proprietary payment-stablecoin positions when calculating net capital. The FAQ expressly describes staff views rather than a Commission rule.

Circle wants GENIUS-compliant payment stablecoins to receive dollar-based valuation and appropriate accounting and customer-reserve treatment. It also asks how ongoing technical work on a functioning blockchain, including maintaining a known validator set, should affect the regulatory analysis. These are separate requests within its response to proposed Regulation Crypto Assets.

The practical distinction is between a token tracking a dollar and the amount a financial firm can recognise for a particular regulatory calculation. Matching the price does not automatically make every legal treatment identical. Circle's announcement establishes its position; it does not establish that the SEC has accepted it.