Banks Can Issue Stablecoins Despite Old Regulations

Banks on the Path to Issuing Stablecoins

Since January, banks in USA, UK, and Europe have obtained a legal pathway to issue stablecoins, store bitcoin, and settle with tokenized assets. This opportunity emerged with the introduction of standards from the Basel Committee regulating crypto-assets.

Ambiguity in Regulation

Formally, banks now have the ability to work with crypto-assets, but their actions are constrained by rules that view bitcoin positions as potentially loss-making. These outdated agreements can hinder the integration of crypto-assets into traditional financial systems.

Context and Background

The Basel Committee standards for crypto-assets took effect at the beginning of this year, marking an important step in regulating crypto markets. However, due to the peculiarities of regulation, banks remain at the starting point. Practically, this means that even with the right to store crypto-assets, regulatory requirements put pressure on banks’ capital reserves.

Comparison with Pre-Tax Period

Unlike traditional assets, crypto-assets face stringent capital demands, making them less attractive to work with. In the face of growing interest from large institutional investors, such as BlackRock and Fidelity, adjusting regulatory approaches to crypto-assets becomes critically important.

Conclusion:

Current crypto-asset regulation creates strong obstacles for their integration into banking systems. Without changes, it will be difficult for banks to take advantage of new opportunities.

• Strengths: Opening a legal path to work with crypto-assets.
• Risks: Outdated regulation slows progress.
• Opportunities: Attracting institutional investors through modernization of rules.
• Threats: Missing out on innovative potential.

Follow new insights in our telegram channel.

No need to invent complex schemes and look for the "grail". Use the Resonance platform tools.

Register via the link — get a bonus and start earning:
OKX | BingX | KuCoin.

Promo code TOPBLOG gives you a 10% discount on any Resonance tariff plan.