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Today in the crypto world, the head of the Basel Committee on Banking Supervision shared with the Financial Times that we might need a “fresh strategy” regarding the hefty 1,250% risk weight for banks dealing with crypto. Meanwhile, US Senator Tim Scott is really pushing to have a vote on the crypto market structure bill this December. Plus, a Cloudflare hiccup temporarily shut down access to several crypto platforms and social media sites.
US and UK Spark Change in Basel’s Tough Crypto Rules
Global banking regulators are getting ready to rethink their strict crypto rules after the US and UK opted not to implement them. This situation could shake up the long-standing agreement of the Basel Committee.
In an interview with the Financial Times, Erik Thedéen, the head of Sweden’s central bank and chair of the Basel Committee on Banking Supervision (BCBS), mentioned they might need a “fresh approach” to the steep 1,250% risk weight for crypto.
According to the global law firm White & Case, this 1,250% risk weight means banks have to hold their own funds equal to the value of their crypto-asset exposure.
Currently, crypto assets on permissionless blockchains, like USDt (USDT) and USDC (USDC), are getting slapped with the same risk weighting as the riskiest ventures.
However, Thedéen recognized that the explosive growth of regulated stablecoins demands a new way of thinking. “What has happened has been quite dramatic,” Thedéen shared with the Financial Times, pointing out the rapid rise of stablecoins and indicating that the total assets out there call for a different approach.
Senator Tim Scott Pushing for December Vote on Crypto Bill
Senate Banking Committee Chair Tim Scott mentioned on Tuesday that he’s setting his sights on a vote for a crypto market structure bill next month, hoping to get it on President Donald Trump’s desk by early 2026.
Scott told Fox Business, “Next month, we believe we can mark up in both committees and get this to the Senate floor early next year so that President Trump will sign the legislation making America the crypto capital of the world.” He also accused Democrats of dragging their feet on the bill.
The House passed the CLARITY Act in July, which clearly defines the powers of the Commodity Futures Trading Commission and the Securities and Exchange Commission over crypto. Now, the Senate is busy working on its own version of the bill through the Banking and Agriculture Committees, aiming to combine the two.
Meanwhile, Coinbase CEO Brian Armstrong shared in a video on X that he was in Washington, DC, “pushing for market structure legislation,” and highlighted that there’s been “a lot of progress.”
“We’ve got a pretty good shot, I think, at marking up this bill in December, and hopefully getting it to the president shortly after,” Armstrong said.
Outages Hit Crypto Sites and Social Media Due to Cloudflare Incident
Several crypto platforms and social media channels faced disruptions on Tuesday after a Cloudflare incident temporarily blocked access to many crypto websites. The company attributed the issue to “internal service degradation.”
The outage impacted user access for major exchanges like Coinbase and BitMEX, along with platforms like Blockchain.com, Ledger, Toncoin, and DefiLlama. Kraken also experienced downtime but was able to implement a fix.
“[T]he root cause of the outage was a configuration file that is automatically generated to manage threat traffic,” a Cloudflare spokesperson explained to Cointelegraph. “The file grew bigger than expected and caused a crash in the software system that handles a variety of Cloudflare’s services.”
While many crypto platforms aim for decentralization, they still depend on centralized servers, making them susceptible to outages like this.
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