Decoding the SEC's Relaxation of Stablecoin Discount Rates — Is It Good News or Bad News?

Today, the SEC's Division of Trading and Markets updated its FAQ, clearly stating that compliant "payment-type stablecoins" can be treated with a 2% discount rate in the calculation of broker-dealer net capital (staff do not oppose). Following this, SEC Commissioner Hester Peirce issued a statement in response, indicating that stablecoins are finally moving from nearly unusable assets in regulatory capital measurement to being closer to low-risk cash-like instruments.
1. What is the discount rate?
The discount rate is the regulator's pricing of asset risk.
To prevent broker-dealer insolvencies, regulators require them to hold a certain amount of net capital. When calculating this capital, assets cannot be valued at 100% of market price; they must be discounted.
Previously, a 100% discount rate on stablecoins meant regulators considered stablecoins extremely risky, valuing them at zero. For example, if a broker holds $1 million in stablecoins, to stay compliant, they not only need to spend $1 million to purchase the stablecoins but also need to prepare an additional $1 million in cash as "margin."
Now, changing to a 2% discount rate means regulators view stablecoins as very safe assets, valuing them at 98%. This is the same treatment as money market funds (MMFs). Holding $1 million in stablecoins, regulators recognize the value as $980,000. Only an additional $20,000 in margin is needed.
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2. Who benefits?
For regulated licensed institutions like Goldman Sachs, JPMorgan Chase, or Robinhood, a 100% discount rate previously made holding stablecoins a form of self-harm. After the change, holding stablecoins becomes almost burden-free for these institutions—they can hold them as needed, making it an optional asset.
This outcome could raise the ceiling for compliant payment-type stablecoins, such as USDC and USD1, which might become profitable.
Especially in RWA and on-chain settlement, for example, the NYSE's 7x24 tokenized US stock trading era allows institutions to use stablecoins for instant settlement and collateral transfer directly, without worrying about tying up double the funds due to holding large amounts of stablecoins.
3. When will it be implemented?
Currently, this is not an official rule change by the SEC but rather a staff-level "no opposition" stance. Legal certainty depends on whether it can be incorporated into formal regulations.
Moreover, not all stablecoins will be eligible—only payment-type stablecoins, mainly those marked as compliant in the recently passed stablecoin legislation. For example, USDC and USD1, which I mentioned earlier, are potential candidates.
Overall, the significance of this is not in short-term price movements but in making the asset-liability side more friendly. Whether stablecoins can be systematically expanded depends not on how lively the on-chain activity is but on their presence on the asset-liability sheets of compliant institutions.
If this plan is ultimately incorporated into formal rules, it will mean stablecoins have truly entered a phase of institutionalized prosperity, allowing Wall Street funds to stay on-chain with lower compliance costs.
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