Should longer-term assets be allowed as reserve assets, the committee believes these must overcollateralize the claims of stablecoin holders.
Basel Committee to consider disclosure requirements for banks’ crypto assets
The committee already imposes a limit on crypto holdings in bank reserves, but the concentration of crypto in a small number of banks contributed to the March crisis, it said.
Basel Committee wants to limit banks’ digital asset exposure to just 1% of equity
Volatile cryptocurrencies such as Bitcoin would also be subjected to a 1,250% risk premium.
Basel Committee presses on with restrictive requirements for banks’ crypto holdings
The committee of central banks and regulators has proposed a “conservative prudential treatment” of crypto assets that banking groups say is prohibitive.