Senate Republicans Push for Clarity on Crypto Capital Rules

Senate Republicans are calling on US banking regulators to clarify crypto capital rules, citing concerns that current standards may prevent banks from participating in digital asset markets.

The move comes as the CLARITY Act gains momentum, which aims to establish a broader market-structure framework for digital assets. The act would allow banks to engage in more on-balance sheet activity, including digital asset custody and settlement services.

The senators argue that banks should be allowed to participate while still managing risk under existing supervisory tools. They also point out that the current Basel Committee framework assigns a 1,250% risk weight to some digital assets, which can be heavy for banks.