Basel Committee Chair Calls for Reevaluation of Crypto Asset Regulations

According to Foresight News, Erik Thedéen, Chair of the Basel Committee on Banking Supervision, emphasized the need to reassess global rules regarding banks' exposure to crypto assets. In an interview with the Financial Times, Thedéen highlighted that the current framework, which imposes an extreme risk weight of up to 1250% on banks holding certain crypto assets, was established when the market was far from mature. Major jurisdictions like the United States and the United Kingdom have declined to adopt the Basel standards in their current form, underscoring growing inconsistencies in regulatory approaches. The rules under review were initially drafted several years ago and were set to take effect on January 1, 2026. Under the existing standards, crypto assets operating on permissionless blockchains, including many stablecoins, are rated at the highest risk level, a classification typically reserved for the riskiest banking activities. With the circulation of stablecoins nearing $300 billion and their increasing integration into institutional payment systems, regulators are under pressure to reassess whether permissionless systems inherently pose systemic risks.