Global regulators review crypto banking rules amid stablecoin surge

Global regulators, led by the Basel Committee, are reassessing banking rules concerning crypto exposures, particularly in light of the surge in stablecoin usage. Current Basel standards assign risk weights differently based on the crypto asset type, treating qualifying stablecoins more favorably than unbacked digital assets. Banks are advocating for more flexible rules to increase their participation in digital asset markets, arguing current frameworks are too restrictive. The review focuses on whether high outflow risks associated with stablecoins necessitate updates to existing prudential guidelines to balance financial innovation with stability. The US, for instance, supports accommodating stablecoin frameworks, exemplified by the GENIUS Act which mandates full reserve backing and holder protections.

(Source：Crypto Briefing)