Stablecoins
Basel Committee Proposes Changes to Criteria Giving Stablecoins Preferential Risk Treatment Among Crypto Assets
However, cryptos with “effective stabilization mechanisms” qualify for “preferential Group 1b regulatory treatment.” This means stablecoins can be subject to “capital requirements based on the risk weights of underlying exposures as set out in the existing Basel Framework,” instead of the tougher requirements set for bitcoin and the like. Source link
Basel Committee Seeks to Consult on Stablecoins Risk Treatment
The initial December report separated its criteria for the treatment of crypto into two groups. Group one cryptos would meet the full set of classification conditions and would be subject to capital requirements. Group two cryptocurrencies that do not meet classification conditions, and so needs newly prescribed capital treatment. Source link