Interpretation of SEC stablecoin discount rate loosening - is it positive or negative? Today, the SEC's Trading and Markets Division updated its FAQ, clarifying that compliant "payment stablecoins" can be processed at a 2% discount rate in the calculation of brokerage net capital rules (staff do not object). Subsequently, SEC Commissioner Hester Peirce issued a statement in response, stating that stablecoins have finally moved from being almost unusable assets to being closer to low-risk cash instruments in regulatory capital measurement. 1. What is the discount rate? The discount rate is the regulatory pricing of asset risk. In order to prevent securities firms from going bankrupt, regulators require them to hold a certain amount of net capital. When calculating these capitals, the assets in hand cannot be calculated at 100% market price and must be discounted. In the past, a 100% discount rate for stablecoins meant that regulators considered stablecoins to be extremely risky and valued at 0. For example, a securities firm holding $1 million in stablecoins not only spends $1 million to purchase stablecoins in order to maintain compliance, but also needs to prepare an additional $1 million in cash as "margin". Now changing to a 2% discount rate means that regulators consider stablecoins to be very safe as assets, with a value of 98%. This is the same treatment as money market funds (MMFs). Holding another $1 million of stablecoins, the regulatory recognition value is $980000. Just need to prepare an additional $20000 deposit. The efficiency of capital utilization has instantly increased by 50 times. 2. Who benefits from it? For regulated licensed institutions such as Goldman Sachs, JPMorgan Chase, or Robinhood, the previous 100% discount rate was self destructive for institutions to allocate stablecoins, but after modification, there is almost no burden for institutions to allocate stablecoins, and they can be configured as long as needed, becoming an optional option. This result will raise the ceiling for compliant payment stablecoins, such as the current USDC and USD1, which may both be profitable. Especially in RWA and on chain settlement, such as the 24/7 tokenized US stock trading conducted by the New York Stock Exchange, institutions can use stablecoins for immediate delivery and collateral transfer without worrying about occupying double their funds due to holding a large amount of stablecoins. When will it be executed? At present, it is not the SEC's official change of rules, but rather a "no objection" statement from the staff level. Legal certainty depends on whether it can enter formal rules in the future. Moreover, not all stablecoins can be used, but only payment stablecoins, mainly compliant stablecoins marked in the recently passed stablecoin bill. For example, the USDC and USD1 that I mentioned earlier are both possible options. Overall, the significance of this matter lies not in short-term currency prices, but in balance sheet friendliness. The key to whether stablecoins can be institutionalized for expansion is never how lively they are on the chain, but whether they are on the balance sheet of compliance agencies. If this plan can ultimately be written into formal rules, it means that stablecoins have truly entered the stage of institutionalized prosperity, and Wall Street funds can reside on the chain at lower compliance costs. @bitget VIP， Lower rates and more generous benefits