SEC Policy Shift on Broker Stablecoin Holdings Could Impact Crypto Market

The U.S. Securities and Exchange Commission (SEC) has implemented a significant but understated change in its approach to how brokerage firms account for stablecoin holdings on their balance sheets. This regulatory shift, which occurred without a major public announcement, mandates that brokers now record stablecoin assets as liabilities. This reclassification could have substantial implications for the crypto industry, potentially affecting the liquidity and operational practices of major brokerages that custody digital assets like Bitcoin (BTC) and Ethereum (ETH). The move signals increased regulatory scrutiny on stablecoins, a cornerstone of the crypto trading ecosystem, and may influence future compliance requirements for all digital asset custodians. Market analysts are watching closely to see if this accounting change prompts brokers to alter their stablecoin reserve strategies, which could ripple through trading volumes and market stability.