The Basel Committee, a global standard-setter for banks, has said it plans to consult on potential revisions to its criteria for stablecoins on Thursday.
The news came after the committee took stock of its review of elements of the prudential standard for banks’ exposure to crypto that it published in December last year.
Regulators have been looking to regulate crypto and mitigate against the risks posed by banks exposure to crypto. Recently Silvergate Bank and Silicon Valley Bank – which had links with crypto – collapsed, causing regulators to more closely scrutinize bank involvement with crypto.
The Basel Committee wants to consult on the criteria for stablecoins to receive group 1b regulatory treatment, referring to “cryptoassets with effective stabilization mechanisms,” it said.
The initial December report separated its criteria for the treatment of crypto into two groups. Group one cryptos would meet the full set of classification conditions and would be subject to capital requirements. Group two cryptocurrencies that do not meet classification conditions, and so needs newly prescribed capital treatment.
“The committee concluded that crypto assets that use permissionless blockchains create risks that cannot be sufficiently mitigated at present and therefore agreed to retain the existing treatment for such cryptoassets,” the report said.
It also agreed to continue to monitor the evolution of banks crypto custody activities and consider if additional work needs to be done.
