Circle asks SEC for stablecoin cash treatment and a zero haircut

Circle has filed a comment letter with the U.S. SEC asking regulators to treat qualifying payment stablecoins as cash under proposed crypto fundraising rules. The company also wants the broker-dealer capital haircut on stablecoins cut from 2% to zero, a change it detailed in an October 28 blog post. If adopted, the shift would lower capital costs for firms holding stablecoins and could deepen institutional use of dollar-pegged tokens, making it a regulatory catalyst traders should watch.