New capital rules for banks’ digital assets have been “politically agreed” by the European Union.
The European Union has reached a “political agreement” on new capital adequacy rules for banks’ digital assets.
The European Parliament’s economic and monetary affairs committee announced this. According to the statement, negotiators from the Parliament, national governments and the European Commission (EC) have reached an “agreement” on changes to the Capital Requirements Regulation and Directive.
At the heart of the negotiations, under the leadership of Swedish Finance Minister Elisabeth Svantesson, were concerns about the penetration of unsecured crypto assets into the financial system and the need for stricter capital requirements.
According to Svantesson, the new rules will “strengthen the strength and resilience of banks operating in the Union”.
The agreement, which also takes into account changes in banks’ risk assessments for corporate and retail loans, includes a “transitional regime for crypto assets,” although there are few details on how exactly that regime will work.
For regulators and lawmakers around the world, the regulation of digital and crypto assets is currently a pressing issue.
In the U.S., the Securities and Exchanges Commission is embroiled in a series of legal battles with crypto exchanges over whether crypto assets should be defined as securities.
Meanwhile, the Basel Committee on Banking Supervision at the Bank for International Settlements is in the process of finalizing its own capital adequacy rules for cryptocurrencies.