Circle, the issuer of the USDC stablecoin, submitted a formal request to the U.S. Securities and Exchange Commission on Oct. 20 asking the regulator to treat qualifying dollar‑backed tokens as cash across securities‑related rules. The request, detailed in a statement released on Oct. 28, targets three core areas: capital calculations for broker‑dealers, customer‑reserve requirements under Rule 15c3‑3, and the valuation of stablecoins in securities fundraising. Circle argues that the standards set by the GENIUS Act and the OCC’s implementing rules, which will take effect on Jan. 18, 2027, provide sufficient consumer‑protection and liquidity safeguards to merit a cash‑equivalent treatment for compliant stablecoins.

Capital and reserve rule changes sought

Under current SEC staff guidance, broker‑dealers must apply a 2% haircut to qualifying stablecoin positions when computing net capital, effectively reducing the recognized value of those assets. Circle contends that this deduction should be eliminated for stablecoins that meet the GENIUS Act’s redemption‑one‑for‑one and reserve requirements, arguing that the existing safeguards justify a more favorable treatment. The firm also seeks clarification that stablecoins can be used to satisfy the cash component of Rule 15c3‑3, which obliges broker‑dealers to hold qualifying assets in reserve accounts for customer protection. If granted, these changes could free up regulatory capital and broaden the use of USDC in institutional trading and settlement operations.

Pilot demonstrates USDC settlement in Latin America

In a parallel development, Circle announced a collaboration with payments‑software provider ACI Worldwide on Oct. 27 to pilot USDC settlement within ACI’s Connetic platform in Colombia. The demonstration connects USDC to existing account‑to‑account and institutional payment flows, showing how a digital dollar can be used as one settlement option alongside traditional bank transfers and card payments. While the pilot does not constitute a continent‑wide rollout, it highlights the operational integration challenges that Circle says are essential for stablecoin adoption beyond crypto‑centric venues. The test focuses on linking the blockchain transfer of USDC with the orchestration, compliance, and reporting layers that banks already use.

What to watch next

Investors and institutions should monitor the SEC’s response to Circle’s letter, particularly any guidance on capital haircuts and reserve‑account eligibility for stablecoins. The outcome will affect how broker‑dealers and other regulated entities incorporate USDC into their balance sheets. Additionally, the performance data from the ACI‑Circle pilot—such as transaction volumes, settlement times, and cost metrics—will indicate whether the integration model can scale across other Latin American corridors and potentially into broader global payment networks. Regulatory developments around the treatment of dollar‑denominated stablecoins in cross‑border payments will also be key to assessing USDC’s institutional trajectory.