Global bank regulators may revise the strict crypto capital rules. Erik Thedéen, chair of the Basel Committee on Banking Supervision confirmed the committee is considering a new direction, reports the Financial Times.

The capital rules require banks to hold matching funds for every crypto asset they have under the current 1,250% risk weighting.

Thedéen said that the stablecoin market’s fast growth is forcing regulators to reconsider the existing standards. “There is a strong increase in stablecoins,” he said, “and that calls for a new approach.” 

US and UK regulators have stated they will not implement the rules as written under the 2022 Basel framework. The European Union has only partially implemented the rules and excluded provisions related to permissionless blockchains.

The Basel Committee is now preparing to revise its 2022 guidance and expects to publish revisions in 2026.