According to Bloomberg, the Basel Committee on Banking Supervision, a key international body that sets global banking standards, is revising the crypto rules it introduced in 2022. Those standards required banks to maintain large sums of capital for every dollar of crypto they held.
As a result, most banks have stayed away from digital assets altogether. But now, as stablecoins grow rapidly and become more important in global payments, regulators are rethinking their approach.
A Changing Landscape for Stablecoins
Stablecoins are digital tokens designed to hold a stable value, often pegged to the US dollar or other fiat currency. They have become the backbone of cryptocurrency trading and are increasingly used in global commerce. According to CoinMetrics data, stablecoin transactions will reach over $9 trillion in 2024, surpassing PayPal’s total annual volume. This explosive growth is one reason regulators are paying closer attention.
🔥 BIG: Stablecoins have processed $46 trillion in transactions over the past year, nearly 3x the volume of Visa and approaching the ACH network that powers the U.S. banking industry. pic.twitter.com/BwLdjzkTGv
– Cointelegraph (@Cointelegraph) October 23, 2025
The initial Basel framework treated most crypto assets as high risk, placing them in the same category as speculative investments. This made it costly for banks to get involved. But as stablecoins like USDC and USDT become more transparent and better regulated, financial institutions argue that not all digital assets carry the same risk. The United States, in particular, has advocated for a more balanced approach that allows banks to manage stablecoins safely without facing excessive capital burdens.
Global regulators are reviewing banking rules on crypto holdings, particularly stablecoins, which are expected to come into effect next year. The original 2022 Basel standards imposed heavy capital requirements, forcing many banks to avoid crypto. The revision aims to update these rules in response…
-Wu Blockchain (@WuBlockchain) October 31, 2025
A concrete example highlights the problem. JPMorgan Chase recently launched its own blockchain-based payment system called JPM Coin, which uses tokenized deposits to instantly transfer money between customers. Although it is not a public stablecoin, it shows how traditional finance and blockchain mix. The Basel Standards update could open the door for more banks to follow suit and securely use digital assets in their operations.
The objective of this revision is not to relax the rules but to make them more practical and adapted to the current market. Regulators want to support innovation while preserving financial stability. A growing number of central banks are also exploring central bank digital currencies (CBDCs), which could further blur the line between traditional and digital currency.
Learn more about Stablecoin regulations
Australia has officially classified stablecoins and wrapped tokens as financial products, bringing them within the country’s regulatory framework. This means that any company offering these digital assets must now obtain a license from the Australian Securities and Investments Commission.
🚨BREAKING: 🇦🇺Australia now classifies stablecoins and wrapped tokens as financial products, requiring providers to obtain a license. pic.twitter.com/PNz2nomyxp
– Coinbureau (@coinbureau) October 29, 2025
The move aims to protect investors, ensure transparency and increase accountability in the growing crypto market, signaling that regulators are serious about integrating digital assets into the traditional financial system.
Disclaimer
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