Basel Chair Calls for Overhaul of Bank Capital Rules for Crypto
The Basel Committee chair told the Financial Times that existing bank capital standards do not properly capture the unique risks posed by cryptocurrencies and related services, and urged a comprehensive overhaul. The FT report says the chair wants clearer, more consistent treatment of crypto exposures across jurisdictions to prevent regulatory arbitrage and to shore up financial stability as banks increasingly interact with crypto firms. If the committee pursues changes, national regulators may raise capital charges or impose new safeguards for banks’ crypto lending, custody and trading activities. That would affect banks’ risk-weighted asset calculations, potentially reducing appetite for crypto business and raising costs for institutional counterparties and customers. Markets and industry groups are likely to push back, but any Basel-level shift would have global influence and could accelerate tougher rules on crypto across major financial centers.