Global banks are poised to adopt a more lenient approach to cryptocurrency as the Basel Committee on Banking Supervision (BCBS) prepares to amend its notable guidance on cryptocurrency exposure, according to a recent Bloomberg report.

Bloomberg highlights that the Basel Committee’s standards from 2022 regarding banks’ treatment of digital assets are set for a favorable update in the coming year. Prior to this, many banks understood those regulations to suggest a complete withdrawal from cryptocurrency investments.

Furthermore, recent discussions within the Basel Committee cover the initial appropriateness of existing regulations, which have yet to be fully integrated by major economies like the United States, United Kingdom, and the European Union.

The urgency for updated guidelines is linked to the rapid expansion of stablecoins, which have recently been recognized for payment usage under the GENIUS Act in the US.

Under current Basel regulations, stablecoins on public blockchains face capital requirements on par with much riskier assets, such as Bitcoin (BTC) or Ether (ETH), a point of contention for many market participants who argue that asset-backed stablecoins present significantly lower risks.

A notable point in the report includes ongoing debates on whether certain nations will proactively refine standards before their rollout, as seen in the United States, contrasted with other nations aiming to adhere to existing guidelines before making revisions.

Additionally, the EU’s Markets in Crypto-Assets Regulation framework has already adjusted stablecoin capital treatment to align with underlying assets, typically cash or cash equivalents.

Related Quotes:
“It’s a very nuanced way of suppressing activity by making it so expensive for the bank to do activities that they’re just like, ‘I can’t.’”
– Chris Perkins, President of CoinFund

For further information and ongoing updates, visit the official Bloomberg article.