Basel Committee Reconsiders Crypto Capital Rules Amid US, UK Opposition
Global banking regulators are poised to revise stringent crypto capital requirements after pushback from US and UK authorities. The Basel Committee on Banking Supervision, led by Chair Erik Thedéen, is reevaluating its 2022 framework that mandated banks hold capital equal to their crypto exposure. Critics argue the rules—particularly the 1,250% risk weight—stifle institutional participation in digital asset markets.
The Federal Reserve has rejected the current standards as impractical, opting instead for a bespoke approach tailored to US market conditions. Meanwhile, the European Union has implemented only partial provisions, excluding those affecting permissionless blockchains. This regulatory recalibration comes as stablecoins gain traction, forcing policymakers to reassess their stance on crypto oversight.
