Law of Code #179 - This month in crypto law: March 2026
Mar 16, 2026
Jonathan Schmalfeld, Policy Director at The Digital Chamber and author of Off the Blockchain, breaks down March’s top crypto regulatory moves. He discusses stablecoin capital haircuts and OCC GENIUS Act debates. He covers developer liability bills, the Uniswap dismissal, Kalshi’s insider-trading fight, and growing institutional custody and banking moves in crypto.
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Broker Dealers Can Use 2% Haircut For Stablecoins
- The SEC's Division of Trading and Markets allows broker-dealers to apply a 2% net capital haircut to payment stablecoins, normalizing them alongside money market funds.
- Jonathan Schmalfeld says this reduces balance-sheet friction and moves big institutions closer to integrating stablecoins into trading and settlement infrastructure.
OCC Proposal Imposes Yield Limits And Complex Definitions
- The OCC's GENIUS Act implementation is a detailed 350-page proposal that sets reserve, custody, and supervisory rules for payment stablecoin issuers.
- Schmalfeld highlights a controversial interpretation restricting yield passthroughs to holders and narrowly defining affiliates and third parties under banking law.
Comment Aggressively On OCC Yield Language
- Submit detailed public comments on the OCC rulemaking, especially clarifying the scope of 'affiliates' and 'third parties' in the yield prohibition.
- Jonathan predicts many industry letters and likely language changes during the rulemaking period.