The Basel Committee on Banking Supervision will reconsider its strict capital charges for cryptocurrencies, a potential boon for banks looking to enter the digital asset space. The announcement from Chair Erik Thedéen follows non-compliance from US and UK regulators.
The existing standard imposes a 1,250% risk weight on crypto exposures, requiring banks to fully back such assets with capital. This has acted as a major barrier to entry.
Thedéen cited the “strong increase” in regulated stablecoins as a key driver for the policy review. He emphasized the need for a swift analysis, suggesting that stablecoins could soon be treated differently than highly volatile cryptocurrencies, paving the way for more manageable capital requirements and greater bank participation.
