Circle is requesting that the US Securities and Exchange Commission classify regulated stablecoins as cash equivalents across securities fundraising, broker-dealer capital calculations, and customer reserve account rules.
The USDC issuer sent a letter to the SEC on October 20 and outlined its proposals in a statement on October 28. Circle argues that stablecoins meeting standards under the GENIUS Act, a federal framework covering stablecoin issuance, reserves, redemption, and supervision, should be treated as payment and settlement instruments in securities markets.
The requests target three areas of SEC regulation. Under securities fundraising rules, Circle seeks recognition of stablecoins in Regulation Crypto Assets, which the SEC proposed to establish a framework for companies raising capital through cryptocurrency offerings. The maximum companies could raise over four years under one exemption is $5 million, while another exemption caps annual fundraising at $75 million.
For broker-dealer capital calculations, Circle points to existing SEC staff guidance updated in February. Under that guidance, broker-dealers apply a 2% haircut to qualifying stablecoin positions when calculating net capital. Circle argues this haircut should be eliminated entirely if stablecoins meet GENIUS Act standards. A broker holding $1 billion in proprietary stablecoin positions currently faces a $20 million reduction in calculated net capital under the 2% haircut.
The third area concerns Rule 15c3-3, which requires broker-dealers to maintain qualifying assets in reserve accounts to protect customer funds. The rule currently contemplates cash and qualified securities. Circle seeks to add stablecoins meeting GENIUS Act standards to the list of qualifying assets.
The Office of the Comptroller of the Currency finalized implementing rules for the GENIUS Act, which is scheduled to take effect on January 18, 2027. Circle’s requests follow the SEC’s proposed Regulation Crypto Assets framework and come as the agency continues to develop its approach to digital assets in securities markets.
