Erik Thedéen, Chair of the Basel Committee on Banking Supervision, has called for a revision of the capital rules for banks holding crypto assets. Thedéen highlighted that the current framework, which imposes a 1250% risk weight on stablecoins, is deemed "unrealistic" by both the Federal Reserve and the Bank of England. He noted that while the 2021 rules focused on Bitcoin, the stablecoin market has since grown to $300 billion, necessitating a reevaluation of regulatory logic.
Thedéen emphasized the need for a swift reassessment of the risk characteristics of permissionless blockchains. The current rules would force mainstream stablecoins like USDT and USDC to adhere to the highest risk weight, which he argues is inappropriate given their market significance and stability.
Basel Committee Chair Calls for Rewrite of Crypto Asset Capital Rules
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