Significant adjustments to stablecoin capital rules, 2% reserve requirement ushers in a new era on Wall Street

SEC’s recent key decision has directly changed the regulatory environment for stablecoins. This policy adjustment is seen as a major turning point in the integration of cryptocurrencies and traditional finance, clearing a critical obstacle to opening the door to Wall Street.

From 100% to 2%, SEC’s Regulatory Shift

Previously, the SEC’s regulation of stablecoins adopted extremely strict standards—requiring broker-dealers to lock in capital equal to 100% of the stablecoin’s asset value. This meant that any financial institution holding stablecoins needed to prepare large amounts of cash to cover potential risks, which was costly and inefficient.

This policy has now undergone a fundamental change. The latest regulatory framework explicitly reduces the reserve requirement for stablecoins to 2%, aligning with the capital adequacy standards of current money market funds. This seemingly small number carries significant economic implications.

Capital Costs Plummet, Green Light for Traditional Institutions

The real cost difference behind this change is substantial. For example, a $10 million stablecoin transaction previously required locking in $10 million in capital reserves, now only $200,000 is needed. This dramatic reduction in reserve requirements directly lowers the barrier for traditional financial institutions to participate in stablecoin trading.

For hedge funds, asset managers, payment processors, and similar entities, this means they can more flexibly conduct on-chain transaction settlements, cross-border transfers, or temporary fund management without worrying about excessive capital lock-up. The decrease in costs directly translates into increased profits, serving as a strong incentive for Wall Street to engage in the stablecoin ecosystem.

Stablecoins as a Bridge Connecting Two Worlds

The deeper significance of this policy change is that stablecoins are gradually evolving from a tool exclusive to the crypto space into a foundational infrastructure connecting traditional finance and blockchain ecosystems.

With the rationalization of capital requirements, the enthusiasm of traditional financial institutions to participate in stablecoin applications will be fully stimulated. From everyday payment settlements to cross-border remittances, liquidity management, and asset custody, the application boundaries of stablecoins are continuously expanding. The arrival of this new phase indicates that the integration of the crypto ecosystem with mainstream finance has entered a new acceleration period.