Global Banking Regulators Consider Easing Crypto Rules for Banks Banks could soon find it easier to hold cryptocurrencies like Bitcoin and stablecoins. International banking regulators are reportedly preparing to revise their strict standards on how banks interact with digital assets. This potential shift signals a significant change in the official perception of crypto within the traditional financial system. The Basel Committee on Banking Supervision, a key global standard-setter for bank regulation, is reviewing the rules it initially set in 2022. Those rules required banks to set aside a substantial amount of capital to cover potential losses on crypto holdings. For certain unbacked cryptocurrencies like Bitcoin, the rules were particularly harsh, effectively making it very expensive for banks to hold them. The committee is now considering adjustments to this framework. This review is partly driven by the rapid growth and evolution of the crypto market, especially the surge in stablecoins. Stablecoins are digital assets pegged to stable assets like the US dollar. Regulators are now examining if the current rules are too conservative, particularly for these types of tokenized assets that have underlying value. This move indicates that major financial authorities are acknowledging that the crypto market is maturing. They are recognizing the need for a more nuanced regulatory approach that differentiates between highly volatile assets and more stable, structured digital instruments. The original rules were designed with a strong focus on risk mitigation, but the landscape has changed with the introduction of clearer regulations in major jurisdictions like Europe and the UK. A revised, more lenient framework would be a major victory for the crypto industry. It would lower the barriers for traditional banks to offer crypto-related services to their clients, such as custody, trading, and investment products. This could lead to a new wave of institutional investment and further legitimize digital assets in the eyes of the public. For the average person, this could mean greater access to crypto through their existing banks. It paves the way for banks to integrate digital assets into everyday financial products, making them a more standard part of investment portfolios. The review process is ongoing, and any new guidelines would need to be adopted by national regulators. However, the mere fact that this reassessment is happening points to a growing acceptance of crypto within the highest levels of global finance.
