Crypto
Home›Crypto›Regulation›SEC seeks central clearing for more Treasury trades ti…
SEC seeks central clearing for more Treasury trades tied to stablecoins
The SEC set a Dec. 31 deadline for eligible spot trades and June 30, 2027 for eligible repos, which could change the cost and availability of Treasury market access used by dollar tokens.
CryptoSlate reports that the SEC is rewriting rules governing how more US Treasury trades clear, by pushing additional transactions through a central clearinghouse rather than leaving them to bilateral recovery between counterparties.
According to CryptoSlate, central clearing makes the clearinghouse the buyer to each seller and the seller to each buyer, so if one trading firm fails, the other side can rely on the clearinghouse to complete the covered trade under its rules, instead of pursuing recovery from the failed company.
CryptoSlate adds that providing this protection requires more money, so the new system could affect what companies pay to trade and borrow Treasuries.
The outlet also links the Treasury market plumbing to stablecoins, saying stablecoin issuers rely on those trading and financing services when converting reserve assets into dollars for customers, meaning changes in Treasury trading cost and availability could affect how well dollar tokens work.
CryptoSlate notes the SEC deadlines are Dec. 31 for eligible outright purchases and sales of Treasuries and June 30, 2027 for eligible repurchase agreements, known as repos.