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. Summary 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. Circle seeks cash treatment for stablecoin payments In its letter, the company asks the SEC to coordinate the proposal with the GENIUS Act and permit only GENIUS-compliant payment stablecoins as consideration or settlement assets under the framework. The filing separates the token being offered from the stabl...