What happened?
Global banking regulators, led by the Basel Committee and pushed by countries like the U.S. and the U.K., are reviewing and likely rewriting the tough 2022 capital rules for crypto assets ahead of a planned 2026 implementation. The original rules imposed punitive risk weights — up to 1,250% for unbacked crypto — which effectively pushed most banks out of the market. The fast rise of stablecoins, new laws like the GENIUS Act, and pressure from industry groups have triggered a rethink to avoid driving activity to unregulated venues.
Who does this affect?
Banks and regulators are directly affected because the rules determine how much capital lenders must hold to offer crypto-related services and whether those services are economically viable. Crypto firms and stablecoin issuers could gain wider access to banking rails and custody services if charges are eased, while trading venues and custodians would see shifts in demand. Consumers and businesses — especially in emerging markets using dollar‑pegged stablecoins as a store of value — will feel the impact through changes in payments, credit availability, and where people choose to hold savings.
Why does this matter?
If regulators soften capital treatment for stablecoins and tokenized assets, banks may re-enter the market, boosting institutional on‑ramps, liquidity, and mainstream adoption of digital assets. Keeping harsh rules risks pushing more activity to unregulated platforms and accelerating outflows from banks into stablecoins — a shift some estimates say could exceed $1 trillion from emerging‑market banks by 2028. The final approach will reshape credit, liquidity and risk distribution across the financial system, so investors, banks and policymakers will all be affected by the market reallocation.