Forbes: US regulators under Trump sidestep Basel to push tokenized securities, big banks poised to benefit
Forbes reports that US financial regulators under Trump are pursuing a US-first, technology-neutral approach to tokenized securities, effectively sidestepping Basel Committee capital rules for crypto. While the Basel Committee applies very high risk weights to noncompliant crypto exposures (up to 1250%), the FDIC, Federal Reserve and OCC have issued FAQs treating tokenized securities that have the same legal rights as their non-tokenized counterparts as eligible for equivalent capital treatment. Major institutions including NYSE, Goldman Sachs, Nasdaq, DTCC, BlackRock, BNY Mellon, Citi and JPMorgan have launched pilots or platforms for tokenized equities, funds and deposits and stand to gain as early movers. The move could reshape capital and custody practices, accelerate tokenization pilots, and concentrate revenue and market share among large incumbents. The report notes this US regulatory stance diverges from international Basel standards and may create cross-jurisdictional frictions and competitive advantages for US firms.
Bullish
This regulatory shift is likely bullish for crypto markets, especially tokenization-related projects and institutional infrastructure. By enabling tokenized securities to receive parity with traditional counterparts, large financial institutions gain legal clarity and capital treatment that reduces barriers to launching tokenized products. That supports demand for tokenization platforms, token custody, and on-chain settlement services, benefiting firms and associated tokens. Historically, clearer regulatory frameworks (for example, spot ETF approvals) have resulted in inflows and higher market confidence. Short-term, markets may see increased interest in tokenization pilots and infrastructure tokens; volatility could rise around regulatory commentary or international pushback. Long-term, concentration of custody and issuance with large banks could centralize tokenized markets and gradually expand institutional demand, supporting a sustained bullish case for assets tied to tokenized finance. Risks include international regulatory divergence, potential retaliatory measures by Basel-aligned jurisdictions, and political/legal challenges that could dampen enthusiasm if capital-treatment rules are later reversed.