"Banks Need to Reassess Cryptocurrency Holdings," Says Basel Committee Chair

Eric Tedeen, Chair of the Basel Committee on Banking Supervision (BIS), emphasized the need to revisit the regulatory framework for banks holding cryptocurrencies, against the backdrop of the rise of stablecoins, as reported by the Financial Times on the 19th. The cryptocurrency regulations of the Basel Committee are set to be implemented on January 1st, mandating banks to set a risk weight of 1,250% for highly volatile cryptocurrencies such as Bitcoin (BTC). This strict standard requires banks to hold more than one dollar in capital for every dollar of cryptocurrency held.