Banks’ Capital Rules When Holding Crypto Need to Be Reworked, Says Basel Committee Chair: FT
The rules on banks holding large amounts of capital to cover losses in cryptocurrency need a rework, the chair of the Basel Committee on Banking Supervision said, according to the Financial Times (FT).
A new approach is needed because the U.S. and U.K. refused to implement the rules, which extend to stablecoins even though they don’t experience the considerable price swings seen in tokens like and ether , Erik Thedéen said in an interview with the newspaper.
The framework proposed in 2021 by the Basel Committee, the global standard-setter for bank prudential regulation, was set to come into force at the start of the next year. The widespread growth of stablecoins this year has led to calls for a rethink. The…
