US Republican Senators Urge Regulators to Clarify Crypto Capital Rules

Banks holding digital assets such as Bitcoin must maintain loss-absorbing buffers under capital rules. The Basel Committee on Banking Supervision assigns risk weights of up to 1,250% to certain crypto assets, which the industry views as effectively restricting banks from engaging in related business. The dispute does not concern any single transaction amount, but could determine whether financial institutions can participate in the market.

Republican Senator Cynthia Lummis recently led a group in writing to the Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency, calling for clear and fair rules on the balance-sheet and capital treatment of digital assets. The letter also urged US regulators to move forward with rules before the international standards’ originally scheduled implementation on January 1, 2026, to avoid creating a blanket ban on holdings.