Circle asks SEC for stablecoin cash treatment and a zero haircut

Circle has urged the U.S. Securities and Exchange Commission to recognize qualifying payment stablecoins as cash in its proposed crypto fundraising rules and cut their broker-dealer capital haircut from 2% to zero. Circle wants GENIUS-compliant stablecoins recognized as cash for payments under the SEC’s proposed framework. A zero haircut would replace the current 2% staff treatment for qualifying broker-dealer positions. Hyperliquid Policy Center’s separate filing targets airdrops, secondary trading, safe-harbor access and automated buybacks. Arc’s validator structure features in Circle’s request for clearer treatment of ongoing technical services. Circle’s October 28 blog outlined a comment letter filed on October 20, the consultation’s closing date. The USDC issuer supports Regulation Crypto Assets, while seeking explicit rules for stablecoin payments and settlement.

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