Bank Crypto Safety-and-Soundness Standards
The Basel Committee has finalized its second try at global standards governing bank cryptoasset exposures, laying out a path that U.S. agencies plan quickly to implement even as Congress continues to wrestle with this fast-changing sector. In general, the final Basel approach allows banks both to undertake cryptoasset activities and hold exposures in this sector. However, the
conditions applied to all but the most straightforward digital assets issued by regulated entities and to all stablecoins are extensive and costly. These are likely to dampen bank exposures and thus contribute to the small amount of crypto interconnectedness that regulators believe was the reason that recent crypto meltdowns posed no systemic risk.