- The Trump administration is openly challenging international banking rules for cryptocurrencies.
- A new 166-page White House report criticizes the Basel Committee’s risk standards for crypto assets.
- The U.S. argues that the Basel Committee’s decisions are not legally binding and wants more influence in the group.
- The Basel Committee’s framework sets a 1250% risk weight for public blockchain crypto, restricting banks from holding U.S. dollar stablecoins.
- Previous efforts by the U.S. to alter the committee’s rules, including those related to climate risk, have faced resistance.
The Trump administration has released a 166-page report that directly opposes current global banking standards for digital assets. The report targets the rules set by the Basel Committee on Banking Supervision, which oversees the main international guidelines for banks. The U.S. is seeking more control over how these standards are set, rather than simply adopting them.
The White House report criticizes the committee’s rule that assigns a 1250% risk weight to crypto assets held on public blockchains. This high risk weight makes it nearly impossible for banks to hold stablecoins tied to the U.S. dollar. The report states, “The BCBS does not possess any formal supranational authority, and its decisions do not have legal force… It is important for the United States to lead in such international forums.”
Assigning a 1250% risk weight means banks must keep extra capital to cover potential losses on these assets, treating them as highly risky. This standard has faced backlash from both U.S. government officials and banks who see it as too strict for stablecoins and other tokenized assets.
The report’s message goes beyond cryptocurrency rules. The administration signals that it wants the U.S. to play a bigger role in shaping global banking regulations, including those made by the Basel Committee. The article notes that the Committee recently resisted U.S. efforts to get rid of its Task Force on Climate-Related Financial Risks. More details can be found in reports such as (Basel Committee resists US pressure to downplay climate risk).
The outcome of this policy debate could affect not just U.S. banks, but also international finance rules. The administration’s challenge marks a notable shift in how the U.S. approaches global financial oversight and its future role in setting standards for banks worldwide.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- CoinDCX Hit by $44M Hack After Engineer’s Laptop Compromised
- Algeria Expands Ban: All Crypto Activities Now Illegal
- Shiba Inu Poised for 500% Surge as Analysts Eye All-Time High
- Ether Machine Buys $57M in ETH, Now 3rd-Largest Corporate Holder
- Google Launches DBSC to Block Cookie Theft, Unveils Patch Gap Policy
