Banks' Capital Rules When Holding Crypto Need to Be Reworked, Says Basel Chair: FT

The Basel Committee is facing increasing pressure to reconsider its stringent capital rules for cryptocurrencies, particularly in light of the rapid adoption of stablecoins. This shift comes as the US, UK, and EU diverge in their regulatory approaches, prompting a reevaluation of previously proposed capital requirements. The evolving landscape of digital assets is forcing global financial regulators to adapt to new market realities.

Basel's stringent crypto regulations are being reconsidered as the US, UK, and EU diverge in their approaches. The chair of the Basel Committee indicated that the rapid adoption of stablecoins is prompting a review of the previously proposed 1,250% capital charges for banks dealing with cryptocurrencies.

Basel's stringent crypto regulations are currently under review due to diverging approaches from the US, UK, and EU. The chair of the Basel Committee indicated that the rapid adoption of stablecoins is prompting a reassessment of the proposed 1,250% capital charges for banks dealing with cryptocurrencies.

The Senate Banking and Agriculture Committees are anticipated to vote on a cryptocurrency market structure bill next month. This potential legislation could significantly influence U.S. crypto regulation, thereby affecting global market dynamics and the country's leadership in innovation within the sector.

Kraken is reportedly in advanced discussions to secure a new round of funding that could elevate its valuation to $20 billion. A strategic investor is considering an investment ranging from $200 million to $300 million, which would significantly enhance the U.S.-based cryptocurrency exchange's position as it approaches a public offering.