Article Summary

**Basel Committee Eyes Crypto Capital Rules Overhaul as Stablecoin Market Explodes** The Basel Committee on Banking Supervision is considering a comprehensive review of cryptocurrency capital requirements following the explosive growth in the stablecoin sector. This potential regulatory shift could significantly impact how traditional banks interact with digital assets, including Bitcoin and other cryptocurrencies. The committee's deliberation comes as stablecoins have emerged as critical infrastructure for the broader cryptocurrency ecosystem, facilitating billions in daily trading volume across DeFi protocols and centralized exchanges. Major stablecoins like USDT and USDC have become essential liquidity bridges between traditional finance and blockchain-based financial services. Banking institutions worldwide are closely monitoring these developments, as revised Basel crypto rules could either accelerate or constrain institutional adoption of digital assets. The regulatory framework review reflects growing recognition that cryptocurrency markets have matured beyond experimental status, requiring sophisticated risk management approaches. This regulatory evolution could reshape the intersection of traditional banking and decentralized finance, potentially unlocking new opportunities for cryptocurrency integration while ensuring adequate capital buffers protect the global financial system from emerging digital asset risks.