Basel reopens crypto bank rules as stablecoins near $300bn

Global regulators led by the Basel Committee have reopened guidance on how banks should treat crypto assets after stablecoins approached $300bn in market size. The move follows pushback from major jurisdictions — notably the US, UK, EU and Singapore — against parts of the 2022 Basel framework that imposed very large capital charges (including a 1,250% risk weight) aimed at permissionless tokens. Regulators say the original rules did not anticipate large, off‑chain stablecoin structures. Proposed adjustments under review would lower capital charges and better align bank treatment with actual stablecoin reserve backing. The Bank of England has separately proposed allowing stablecoin issuers to hold up to 60% of reserves in short‑term government debt and set retail and business holding caps (£20,000 and £10m respectively); its consultation runs until 10 Feb 2026. Any Basel changes are expected to be cautious and staged, with implementation timelines pointing toward 2026. For traders: lower bank capital costs could make it cheaper for banks to provide custody, payment and settlement services for stablecoins, which may expand institutional access, deepen liquidity and strengthen market infrastructure. In the short term, markets will react to regulatory signalling — watch Basel Committee updates, US/EU regulatory moves, BoE consultation outcomes, on‑chain liquidity, new‑listing alerts and spreads. Overall, eased treatment for some stablecoins would be a structural positive for market access and liquidity, but changes are likely gradual and contingent on final rule language.