Global Regulators Forced to Rethink Stringent Bank Crypto Rules

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Facing a rebellion from its US and UK members, the Basel Committee on Banking Supervision (BCBS) is preparing to revisit its harsh capital requirements for cryptocurrencies, a move that threatens the group’s longstanding global consensus.

The committee’s chair, Erik Thedéen, confirmed in an interview with the Financial Times that a “different approach” is needed for the current standard, which assigns a 1,250% risk weight to bank exposures to crypto. This rule, which treats assets like Bitcoin and stablecoins (USDT, USDC) as riskier than junk bonds, forces banks to hold capital equal to the full value of their crypto investments.

Thedéen cited the “fairly dramatic” growth of regulated stablecoins as a primary reason for the shift, acknowledging that the sheer volume of assets now in the system demands a new policy. “We need to start analysing. But we need to be fairly quick on it,” he stated, signaling an urgent review to potentially create a more nuanced framework.