Senate Republicans Urge Regulators to Clarify Crypto Capital Rules

A group of Senate Republicans urged US financial regulators to clarify capital standards for companies engaged in crypto activities. Senator Cynthia Lummis led the group in sending a letter on May 27 to Federal Reserve Vice Chair for Supervision Miki Bowman, Federal Deposit Insurance Corp.

Chairman Travis Hill, and Comptroller of the Currency Jonathan Gould. The letter commended the agencies’ March guidance on the capital treatment of tokenized securities but urged them to 'build on that progress to move towards a clear and fair capital treatment for on-balance sheet treatment of digital assets.' The senators criticized current international rules that require banks to hold a greater value of reserve assets than the value of their digital holdings, calling that approach a 'de facto ban' on banks holding crypto.

United States

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