{"id":18155,"date":"2025-11-19T15:41:06","date_gmt":"2025-11-19T14:41:06","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=18155"},"modified":"2025-11-19T15:41:06","modified_gmt":"2025-11-19T14:41:06","slug":"basel-committee-to-reevaluate-crypto-risk-for-banks","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/11\/19\/basel-committee-to-reevaluate-crypto-risk-for-banks\/","title":{"rendered":"Basel Committee to Reevaluate Crypto Risk for Banks"},"content":{"rendered":"

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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 \u201cfresh strategy\u201d 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.<\/p>\n

US and UK Spark Change in Basel’s Tough Crypto Rules<\/h2>\n

Global banking regulators are getting ready to rethink their strict crypto rules<\/a> after the US and UK opted not to implement them. This situation could shake up the long-standing agreement of the Basel Committee.<\/p>\n

In an interview<\/a> with the Financial Times, Erik Thed\u00e9en, the head of Sweden’s central bank and chair of the Basel Committee on Banking Supervision (BCBS), mentioned they might need a \u201cfresh approach\u201d to the steep 1,250% risk weight for crypto.<\/p>\n

According<\/a> 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.<\/p>\n

Currently, crypto assets on permissionless blockchains, like USDt (USDT<\/a>) and USDC (USDC<\/a>), are getting slapped with the same risk weighting as the riskiest ventures.<\/p>\n

However, Thed\u00e9en recognized that the explosive growth of regulated stablecoins demands a new way of thinking. \u201cWhat has happened has been quite dramatic,\u201d Thed\u00e9en 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.<\/p>\n

Senator Tim Scott Pushing for December Vote on Crypto Bill<\/h2>\n

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<\/a>, hoping to get it on President Donald Trump\u2019s desk by early 2026.<\/p>\n

Scott told Fox Business, \u201cNext 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.\u201d He also accused Democrats of dragging their feet on the bill.<\/p>\n

Banking Committee Chairman Tim Scott anticipates a vote on the market structure bill could happen in December. Source: <\/em>YouTube<\/em><\/a><\/figcaption><\/figure>\n

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.<\/p>\n

Meanwhile, Coinbase CEO Brian Armstrong shared in a video on X that he was in Washington, DC, \u201cpushing for market structure legislation,\u201d and highlighted that there\u2019s been \u201ca lot of progress.\u201d<\/p>\n

\u201cWe\u2019ve got a pretty good shot, I think, at marking up this bill in December, and hopefully getting it to the president shortly after,\u201d Armstrong said.<\/p>\n

Outages Hit Crypto Sites and Social Media Due to Cloudflare Incident<\/h2>\n

Several crypto platforms and social media channels faced disruptions on Tuesday after a Cloudflare incident temporarily blocked access<\/a> to many crypto websites. The company attributed the issue to \u201cinternal service degradation.\u201d<\/p>\n

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.<\/p>\n

\n \"Cryptocurrencies,
Source: <\/em>Cloudflare<\/em><\/a><\/figcaption><\/figure>\n

\u201c[T]he root cause of the outage was a configuration file that is automatically generated to manage threat traffic,\u201d a Cloudflare spokesperson explained to Cointelegraph. \u201cThe file grew bigger than expected and caused a crash in the software system that handles a variety of Cloudflare\u2019s services.\u201d<\/p>\n

While many crypto platforms aim for decentralization, they still depend on centralized servers<\/a>, making them susceptible to outages like this.<\/p>\n