Senate Republicans Push for Clearer Crypto Capital Rules

A group of Senate Republicans has called on US financial regulators to review and clarify the capital standards for companies engaged in cryptocurrency activities.

In a letter sent to Federal Reserve Vice Chair Miki Bowman and other regulatory agencies, the senators argue that current international standards are overly restrictive and do not accurately reflect the risks associated with crypto holdings.

The group points out that current Basel Committee on Bank Supervision standards assign a 1,250% risk weight to crypto, which they claim is 'not derived from a calibrated assessment of the actual risk profile of digital assets.'

Senators argue that any proposed capital treatment should be based on a technology-neutral approach and give banks the authority to participate meaningfully in digital asset markets.