- Basel Chair Erik Thedéen confirmed a rework of global crypto capital rules for banks.
- The move follows refusal by the US and UK to implement “punitive” stablecoin standards.
- Regulators aim to separate stablecoins from volatile assets to reflect market reality.
Global banking regulators face rising pressure to update capital rules for cryptocurrency holdings as stablecoin adoption accelerates and major jurisdictions resist earlier proposals. The Basel Committee now sees an urgent need to redesign the framework because the existing plan does not match current market realities.
The shift reflects increasing concern that older assumptions about crypto risk fail to capture today’s landscape. Moreover, global regulators want a system that aligns with the rapid expansion of tokenized money and new payment models.
Why the ‘High-Risk’ Classification Failed
The 2021 Basel blueprint set strict capital demands for banks holding digital assets. The approach grouped volatile tokens and stablecoins under a single high-risk category. The committee built the framework during a period when attention centered on bitcoin and ether.
However, crypto markets changed dramatically this year. Stablecoins now drive significant transaction volumes across exchanges and payment channels. Hence, regulators want to reassess the risk profile of these assets.
Besides that shift, central bankers also want clarity on permissionless blockchain systems. Some policymakers question whether earlier risk assumptions still apply.
They argue that these networks now support more predictable settlement activity. Consequently, the committee wants deeper analysis on how those features influence prudential standards.
Resistance From Major Economies Triggers Rethink
The United States and the United Kingdom declined to implement the original rules. Both jurisdictions said the earlier plan failed to reflect practical market conditions. Their decisions created a widening gap in global coordination.
Additionally, US officials raised concerns about disproportionate capital treatment, especially for regulated stablecoins. The Bank of England also sought more workable standards for domestic institutions.
Related: Hong Kong Goes All-In on Big Money Crypto with Strict Basel Rules From 2026
This resistance signaled a broader issue. Regulators need globally consistent buffers, yet they must also consider differences in adoption trends.
Hence, the committee now plans a faster review cycle. It aims to introduce an updated structure that treats stablecoins and volatile tokens separately. It also wants clearer criteria for measuring operational and liquidity risks within blockchain systems.
Stablecoin Growth Forces a Faster Review Cycle
Stablecoin circulation grew significantly this year. This expansion increased pressure on regulators to update the framework without delay.
Moreover, banks exploring tokenization partnerships want clarity before scaling new services. Industry executives say uncertainty limits long-term planning. Hence, policymakers intend to accelerate assessments and deliver a more flexible global standard.
Related: Basel Committee Tightens Crypto Rules, Favoring Centralized Stablecoins
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Source: https://coinedition.com/global-crypto-rules-for-banks-need-reworking-says-basel-chair/
