Basel Rethinks Crypto Rules Amid Stablecoin Surge

In a significant shift, the Basel Committee on Banking Supervision is reportedly rethinking its crypto rules, responding to mounting pressure from global banks and the rapid growth of regulated stablecoins. Previously, the committee proposed strict capital requirements for banks holding crypto assets, particularly treating unbacked tokens like Bitcoin as high-risk. But with the landscape evolving — especially the rise of fiat-backed stablecoins — the committee appears open to revisiting its framework. This comes amid calls from major financial institutions urging regulators to provide more flexible, realistic guidelines for handling digital assets.

Stablecoins Changing the Game

One of the key drivers behind this re-evaluation is the increasing adoption of regulated stablecoins, such as USDC and EUR-backed equivalents. These assets are seen as more predictable and lower-risk compared to volatile cryptocurrencies, making them more appealing for banking operations. With stablecoins now integrated into global payment systems and decentralized finance (DeFi), regulators are being forced to acknowledge their role in the broader financial ecosystem. The Basel Committee is reportedly considering adjusting the risk classification of these coins, potentially allowing banks to hold a larger amount of them without excessive capital restrictions.

Banking Industry Pushes Back

Global banks have argued that the earlier rules were overly conservative and could limit innovation. The pushback has now reached a point where regulators must strike a balance between maintaining financial stability and enabling crypto innovation. The committee’s evolving position could signal a major shift in how traditional finance interacts with digital assets — especially if stablecoins continue gaining traction. A new regulatory approach could unlock more opportunities for banks to engage in the crypto space, bridging the gap between old and new financial systems.