Global Standards for Bank Cryptoasset Exposures
Global banking regulators are trying a new, but still stringent, approach to governing bank exposures to certain types of crypto assets, revising an initial consultation to focus more on supervisory limitations than on extremely punitive capital requirements for what are deemed to be lower risk cryptoassets. Under the new approach, it will be easier for banks to offer, facilitate, or otherwise enable tokenized forms of traditional assets without disproportionately-costly capital charges as long as an array of risk-mitigation restrictions are met. Higher-risk cryptoassets would come under exposure limits as well as costly capital requirements, although the new consultation does permit these to be reduced via various hedging methods that might make such stablecoins viable products in certain circumstances.