# Supervision Related Articles

US Senators Press Bank Regulators For ‘Fair’ Crypto Capital Rules

A group of U.S. Senate Republicans, led by Senator Cynthia Lummis, is urging federal bank regulators to establish clear and fair capital rules for banks involved with crypto assets. In a letter to the Federal Reserve, FDIC, and OCC, the lawmakers criticized the international Basel Committee's standards, which impose a punitive 1,250% risk weight on crypto assets, calling it a de facto ban not based on actual risk. They applauded recent interagency guidance that granted tokenized securities the same capital treatment as traditional ones, arguing this risk-based principle should apply consistently to all digital assets. The senators called on the agencies to develop a new capital framework, aligning with recent legislative progress on crypto market structure. Their push coincides with testimonies from top regulators, who emphasized a shift toward more risk-based supervision and responsible innovation, while also addressing stablecoin oversight under new proposals.

bitcoinist06/05 15:20

European Central Bank Backs EU’s Plan For Centralized Crypto Firms Oversight

The European Central Bank (ECB) has endorsed the EU's proposal to centralize oversight of crypto asset service providers (CASPs) and other key financial market participants under the European Securities and Markets Authority (ESMA). This move, supported by France and Germany, aims to harmonize regulation and boost the competitiveness of the EU's capital markets. The ECB emphasized the need for ESMA resources and a gradual transition to minimize disruption. However, the plan faces opposition from smaller EU nations and industry participants who argue it undermines national regulators' efforts and the credibility of the existing Markets in Crypto-Assets Regulation (MiCA). Critics warn that reopening MiCA now could create legal uncertainties and delay implementation. The proposal will now undergo negotiations between EU governments and the European Parliament.

bitcoinist04/11 12:32

Crypto’s Next Expansion Will Be Licensed, Not Borderless

Crypto's next expansion is shifting towards a permissioned growth model rather than borderless, unregulated growth. Jurisdictions like the U.S., U.K., and Hong Kong are implementing structured regulatory frameworks with clear licensing processes, supervisory expectations, and compliance requirements. Stablecoins are central to this shift, as they bridge crypto and traditional finance, attracting stricter oversight. Compliance is no longer an afterthought but integral to product design, affecting exchanges, custodians, and issuers. This transition favors serious firms that can operate under formal supervision, making the environment more investable for institutions while reducing reliance on offshore ambiguity. The era of selective legitimacy prioritizes credible regulatory paths over loose policies.

bitcoinist03/11 22:02

US Fed Moves to End ‘Reputation Risk’ Rule Amid Crypto Debanking Concerns

The US Federal Reserve is moving to codify a rule that would eliminate "reputation risk" as a factor in banking supervision, a practice blamed for widespread crypto debanking. Announced on February 23, the proposal seeks public feedback for two months. Fed Vice Chair Michelle Bowman stated that supervisors have been improperly pressuring banks to close accounts based on customers' political views, religious beliefs, or involvement in lawful but disfavored businesses like crypto, calling such discrimination unlawful. Senator Lummis and industry figures praised the move, viewing it as ending "Operation Chokepoint 2.0," a term describing alleged government efforts to cut off crypto firms from banking services.

TheNewsCrypto02/24 06:00

Federal Reserve Withdraws Crypto Rules, Banks Get More Freedom

bitcoinist12/18 22:01