Global banking regulators are preparing to revisit their toughest crypto rules after the United States and the United Kingdom refused to adopt them—an unprecedented challenge to the long-standing consensus that underpins the Basel Committee’s standards.
In an interview with the Financial Times, Erik Thedéen, governor of Sweden’s central bank and chair of the Basel Committee on Banking Supervision (BCBS), said the group may need a “different approach” to the current 1,250% risk weighting applied to banks’ crypto exposures.
According to law firm White & Case, a 1,250% risk weight effectively requires banks to hold capital equal to 100% of the value of their crypto asset exposures. Under the existing Basel framework, assets issued on permissionless blockchains—including major stablecoins such as USDT and USDC—are treated with the same capital charges applied to the riskiest venture investments.
But Thedéen acknowledged that the rapid rise of regulated stablecoins has reshaped the environment. “What has happened has been fairly dramatic,” he told the FT, pointing to surging growth in stablecoin markets. The scale of assets now circulating, he said, warrants a reconsideration of how these products are treated. “We need to start analysing. But we need to be fairly quick,” he added, suggesting there may be grounds for a different risk approach.
Major Economies Push Back
Resistance from major economies is now out in the open. According to the FT, the U.S. Federal Reserve does not intend to implement the Basel crypto rules as written, with officials calling the capital charges unrealistic.
The Bank of England has also signaled it will not apply the framework in its current form. Meanwhile, the European Union has only partially implemented the 2022 Basel standard, excluding key rules covering permissionless blockchains.
Bloomberg previously reported that the Basel Committee is preparing to revise its 2022 guidance next year, aiming for a more accommodating stance toward banks that want to participate in crypto and stablecoin markets. Many institutions viewed the original rules as a de facto prohibition on offering crypto-related services.
Talks have intensified amid growing adoption of regulated stablecoins in the United States, bolstered by President Donald Trump’s support and the passage of the GENIUS Act, which formally authorizes their use in payments.
Stablecoin Surge Prompts Policy Rethink
Thedéen echoed these concerns, saying the surge in stablecoin adoption demands a fresh review and possibly a more flexible regulatory approach. However, he cautioned that reaching consensus will be difficult, as committee members remain deeply divided on fundamental assumptions regarding crypto’s risk profile and the future role of bank-issued digital assets.
“Going further than that at this point in time is difficult, because I’m the chair and there are so many different views in this committee,” he said.
Growing Divide Raises Competitive Concerns
The widening split over crypto rules is creating fears of competitive imbalance for global banks. If EU institutions remain bound by strict Basel mandates while the U.S. and U.K. adopt more permissive frameworks, the playing field could tilt sharply.
Such disparities would influence which jurisdictions can take the lead in developing bank-issued stablecoins, tokenized deposits, and digital-asset custody services—potentially reshaping the global financial landscape.
