Global crypto rules for banks need reworking, says Basel chair
Overview
The chair of the Basel Committee on Banking Supervision has emphasized the need for a reevaluation of global cryptocurrency regulations. This call comes in response to the stance taken by the US and UK regarding stablecoin risk weighting.
What Happened
The Basel Committee, which sets international banking regulations, is facing challenges with the current framework for stablecoins. The US and UK have opted not to adopt the proposed requirement that would impose a risk weighting of 1,250 percent on stablecoins. This decision indicates a divergence in regulatory approaches to digital currencies, particularly stablecoins, which are designed to maintain a stable value.
Why It Matters
The refusal by major economies to implement stringent risk requirements for stablecoins raises questions about the stability and security of these digital assets. Stablecoins play a significant role in the broader cryptocurrency ecosystem, often being used for trading and transactions. The lack of a unified regulatory framework could lead to increased risks for banks and financial institutions that engage with cryptocurrencies.
Impact on the crypto market
- Potential for regulatory fragmentation as different jurisdictions adopt varying approaches to stablecoin regulation.
- Increased scrutiny of stablecoins by regulatory bodies as they seek to establish clearer guidelines.
- Possible implications for the adoption and integration of stablecoins within traditional financial systems.
- Heightened concerns regarding the risk management practices of banks dealing with cryptocurrencies.
- A need for ongoing dialogue and collaboration among global regulators to create a cohesive framework for digital assets.
Updated: 11/19/2025, 5:23:37 AM
