Update
Circle Urges SEC to Treat Stablecoins Like Cash
Circle, the issuer of USDC, is asking the US Securities and Exchange Commission (SEC) to reduce the 2% regulatory capital haircut on payment stablecoins to zero. Under current SEC guidance, this would eliminate a $20 million deduction per $1 billion of proprietary positions. Circle aims to expand institutional adoption of USDC by aligning stablecoins with cash in securities markets, potentially allowing financial institutions to use stablecoins for activities currently governed by cash-specific requirements.