The post Global Crypto Rules for Banks Need Reworking, Says Basel Chair appeared on BitcoinEthereumNews.com. Basel Chair Erik Thedéen confirmed a rework of global crypto capital rules for banks. The move follows refusal by the US and UK to implement “punitive” stablecoin standards. Regulators aim to separate stablecoins from volatile assets to reflect market reality. Global banking regulators face rising pressure to update capital rules for cryptocurrency holdings as stablecoin adoption accelerates and major jurisdictions resist earlier proposals. The Basel Committee now sees an urgent need to redesign the framework because the existing plan does not match current market realities.  The shift reflects increasing concern that older assumptions about crypto risk fail to capture today’s landscape. Moreover, global regulators want a system that aligns with the rapid expansion of tokenized money and new payment models. Why the ‘High-Risk’ Classification Failed The 2021 Basel blueprint set strict capital demands for banks holding digital assets. The approach grouped volatile tokens and stablecoins under a single high-risk category. The committee built the framework during a period when attention centered on bitcoin and ether.  However, crypto markets changed dramatically this year. Stablecoins now drive significant transaction volumes across exchanges and payment channels. Hence, regulators want to reassess the risk profile of these assets. Besides that shift, central bankers also want clarity on permissionless blockchain systems. Some policymakers question whether earlier risk assumptions still apply.  They argue that these networks now support more predictable settlement activity. Consequently, the committee wants deeper analysis on how those features influence prudential standards. Resistance From Major Economies Triggers Rethink The United States and the United Kingdom declined to implement the original rules. Both jurisdictions said the earlier plan failed to reflect practical market conditions. Their decisions created a widening gap in global coordination.  Additionally, US officials raised concerns about disproportionate capital treatment, especially for regulated stablecoins. The Bank of England also sought more workable… The post Global Crypto Rules for Banks Need Reworking, Says Basel Chair appeared on BitcoinEthereumNews.com. Basel Chair Erik Thedéen confirmed a rework of global crypto capital rules for banks. The move follows refusal by the US and UK to implement “punitive” stablecoin standards. Regulators aim to separate stablecoins from volatile assets to reflect market reality. Global banking regulators face rising pressure to update capital rules for cryptocurrency holdings as stablecoin adoption accelerates and major jurisdictions resist earlier proposals. The Basel Committee now sees an urgent need to redesign the framework because the existing plan does not match current market realities.  The shift reflects increasing concern that older assumptions about crypto risk fail to capture today’s landscape. Moreover, global regulators want a system that aligns with the rapid expansion of tokenized money and new payment models. Why the ‘High-Risk’ Classification Failed The 2021 Basel blueprint set strict capital demands for banks holding digital assets. The approach grouped volatile tokens and stablecoins under a single high-risk category. The committee built the framework during a period when attention centered on bitcoin and ether.  However, crypto markets changed dramatically this year. Stablecoins now drive significant transaction volumes across exchanges and payment channels. Hence, regulators want to reassess the risk profile of these assets. Besides that shift, central bankers also want clarity on permissionless blockchain systems. Some policymakers question whether earlier risk assumptions still apply.  They argue that these networks now support more predictable settlement activity. Consequently, the committee wants deeper analysis on how those features influence prudential standards. Resistance From Major Economies Triggers Rethink The United States and the United Kingdom declined to implement the original rules. Both jurisdictions said the earlier plan failed to reflect practical market conditions. Their decisions created a widening gap in global coordination.  Additionally, US officials raised concerns about disproportionate capital treatment, especially for regulated stablecoins. The Bank of England also sought more workable…