The Basel Committee on Banking Supervision is undergoing a significant review of its strict crypto capital rules, spurred by the explosive growth of the stablecoin market. Regulatory bodies across the globe are pushing for more balanced global oversight as the US and UK have publicly rejected current standards. 1,250% risk weighting on bank exposures to crypto assets, including stablecoins, has been a major source of friction. This approach was designed for volatile cryptocurrencies but doesn’t adequately reflect the stability and structure of today’s stablecoin ecosystem. This review is being driven by increasing pressure from stablecoin usage, which now plays a pivotal role in global digital asset trading. These growing markets are estimated to be worth near $300 billion. The Basel Committee acknowledges that traditional capital frameworks need to adapt. 🚨 Chair of the Basel Committee explicitly notes that crypto capital rules must be reworked, as they impact banks’ returns on equity and directly influence their share prices. The review process is crucial for a more coherent global regulatory landscape. Leading financial centers are calling for changes, with the US Federal Reserve signaling its opposition to the current framework while the UK intends to develop its own rules for digital assets. The result is increased pressure on Basel to adapt and create new, globally consistent standards. This shift towards stablecoin-focused regulation will influence how the global financial market operates.