Basel Committee Seeks to Consult on Stablecoins Risk Treatment
Summary
The Basel Committee, a global banking standards body, announced it will be reviewing its criteria for stablecoins, following a scrutiny of the standard for bank exposures to crypto it published in December. The move comes amid increasing attempts from regulators to handle the risks presented by banks' exposure to cryptos. The committee aims to consult on the conditions for stablecoins to receive 'group 1b' regulatory treatment, referring to "cryptoassets with effective stabilisation mechanisms". The committee will also continue monitoring banks' crypto custody activities and assess if more work is required.
