Senate Republicans push finance watchdogs to clarify crypto capital rules
Senate Republicans led by Cynthia Lummis urged the Fed, FDIC, and OCC to clarify capital rules for banks and firms holding digital assets. They praised March guidance on tokenized securities but said regulators should extend it to create a clear, fair, technology-neutral framework for on-balance-sheet crypto holdings. The senators argued current Basel-based standards, including a 1,250% risk weight for crypto, effectively deter banks from holding digital assets and are not based on actual risk. They said upcoming crypto legislation, including the CLARITY Act, will require capital guidance and asked regulators to begin developing a new framework. The letter was also signed by Dan Sullivan, Bill Hagerty, Bernie Moreno, Ted Budd, and Jon Husted. Meanwhile, Senate debate on the crypto bill is set to resume, with committees needing to reconcile separate versions before a full vote.
