Chairman of the Basel Committee: Stablecoin boom may prompt a review of regulatory rules.

The Chairman of the Basel Committee on Banking Supervision stated that the rapid development of stablecoins may prompt global policymakers to reassess new banking capital standards for crypto assets. "The hot topic right now is stablecoins," said Erik Theden, who also serves as the Governor of the Swedish Central Bank, at a meeting in Washington on Wednesday. However, he noted that stablecoins will not be the focus when policymakers plan new capital rules for crypto assets in 2022, and this is one of the reasons that may require discussion and evaluation. The rules, set to be implemented next year, stipulate that banks' capital requirements for holding most stablecoins will be at a level equivalent to those for holding more risky cryptocurrencies like Bitcoin. The financial industry has been lobbying for rule modifications to reduce the costs for banks participating in crypto-related business - a demand that aims to reflect changes in the industry since the rule proposal was first reached in 2022. The United States has also raised questions about the fairness of the rules and has promised to regulate stablecoins through the Stablecoin National Innovation Act. However, Theden added that any changes must go through a "very thorough process" and be consulted with all member countries of the committee before progressing, with some member countries already beginning to implement these rules. This statement was made by Theden during an event at the International Monetary Fund (IMF) meeting. Officials are currently issuing stronger warnings about the potential financial stability risks posed by cryptocurrencies backed by liquid assets.