Crypto Capital Rules Need Revision, Says Basel Head: FT
Banks' Capital Rules When Holding Crypto Need to Be Reworked, Says Basel Chair: FT
Erik Thedéen stated a revised strategy is required as the U.S. and U.K. declined to put in place the established regulations.
By Jamie Crawley|Edited by Sheldon Reback Nov 19, 2025, 12:46 p.m.
What to know:
- The chairman of the Basel Committee on Banking Supervision expressed that regulations concerning banks maintaining substantial capital for absorbing cryptocurrency losses necessitate revision.
- Michelle Bowman, the U.S. Federal Reserve's deputy chair for supervision, characterized the regulations as "not very realistic" last month, and the Bank of England opted out of enforcing them in their present form.
- Erik Thedéen mentioned, “The emphasis previously rested predominantly on bitcoins globally.” “Presently, stablecoins are, of course, the topic of discussion."
According to the Financial Times (FT), the chairman of the Basel Committee on Banking Supervision stated that the guidelines governing banks retaining significant capital to offset cryptocurrency deficits are in need of revision.
A fresh strategy is vital because the U.S. and U.K. chose not to execute the guidelines, which encompass stablecoins despite their not undergoing the noticeable price variations observed in tokens such as and ether , Erik Thedéen expressed in an interview with the publication.
The framework put forward in 2021 by the Basel Committee, the international body establishing standards for bank regulatory oversight, was scheduled to be enacted at the commencement of the following year. The extensive surge in stablecoins this year has prompted appeals for reconsideration. The committee is managed under the patronage of the Bank for International Settlements, an entity owned by a multitude of global central banks.
"The concentration previously centered largely on the bitcoins in existence," Thedéen remarked. "At present, naturally, stablecoins are the topic of conversation. Permissionless ledgers: Do these present as much risk as initially assessed? Or, could it be argued that a different perspective is warranted? We must commence analyzing this. However, swift action is essential."
Michelle Bowman, the U.S. Federal Reserve's vice-chair for supervision, labeled the regulations "not very realistic" the prior month. Moreover, the Bank of England opted against implementing them in their current iteration, as stated by the FT.
