SEC Clarifies Stablecoin Capital Rules for Broker-Dealers

SEC Clarifies Stablecoin Net Capital Haircut Rules for Broker-Dealers

The U.S. Securities and Exchange Commission (SEC) staff recently issued guidance clarifying that broker-dealers may apply a 2% haircut to their holdings of certain "payment stablecoins" when calculating net capital requirements.

Previously, such assets were often subject to a punitive 100% haircut, effectively treating them as non-allowable assets for liquidity purposes. By allowing a 2% deduction, the SEC is acknowledging stablecoins as high-quality, liquid assets similar to cash equivalents.

This move significantly reduces the capital cost for traditional financial institutions and broker-dealers to maintain stablecoin positions, facilitating their use in regulated trading and settlement workflows. SEC Commissioner Hester Peirce noted that this change reflects a more pragmatic approach to integrating digital assets into existing financial regulatory frameworks, provided the stablecoins meet specific readiness and marketability criteria

Jane Street accused of pumping and dumping Bitcoin

Following a viral article by a user named Justin, the crypto community has been debating allegations that high-frequency trading giant Jane Street systematically suppresses Bitcoin prices through ETF and derivative structures. The allegations link Terra's collapse, legal suits, and a recurring "10 AM dump" phenomenon after US market opens.

However, industry experts argue this is likely a misunderstanding of market-neutral strategies. The observed selling pressure often stems from ETF redemptions and delta-hedging by market makers. Furthermore, much of the large-scale inflow/outflow in ETFs like IBIT is driven by basis arbitrage—quant funds longing spot ETFs while shorting CME futures—rather than directional bets.

As arbitrage yields fluctuate, these funds rebalance, creating visible market moves that are often misconstrued as intentional manipulation in a low-liquidity environment following the "10.11" market crash.

Capital shifts from crypto to US Equities by Wintermute

A comprehensive report by algorithmic market maker Wintermute reveals a significant structural shift in retail capital flows since late 2024. The historical positive correlation between retail buying in crypto and US equities has turned negative, with record-breaking retail inflows into the US stock market coinciding with a "wait-and-see" approach in crypto. Data indicates that the BTC/Nasdaq volatility ratio has trended downward, and the ease of switching between asset classes via ETFs has accelerated this rotation. Retail investors increasingly view US equities as a substitute for crypto risk assets, particularly as altcoin market caps and retail activity remain subdued.

Wintermute suggests that US equity market activity has now become a crucial leading indicator for the crypto market, urging institutional traders to adopt a multi-asset perspective when evaluating liquidity and volatility trends in the current macro environment.

See original link: https://x.com/wintermute_t/status/2027006538653880495

About 1Token:

1Token is a digital asset investment management platform providing Crypto PMS, RMS, and Portfolio Accounting Software, managing over $20 billion in assets for more than 80 clients worldwide.

All-in-one support designed for allocators, portfolio managers, treasury managers and fund operations and accountants, seeking transparency and control.

• Front office (portfolio managers and traders) to view live position and exposure, calculate trading PnL and historical performance.
• Middle office (ops and risk) to maintain portfolios and API accounts, book OTC trades, monitor risk metrics and analyze VaR/STV, generate shadow NAV with investor subscription/redemption/dividend.
• Back office (admin and auditors) to collect and reconcile trades, generate valuation and PnL reporting under FIFO/WAC tax strategy.