Basel III and Bitcoin: How Will Capital Reforms Impact Crypto Custody

By Coin Edition
about 1 month ago
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  • The Mandate: Fed Governor Michelle Bowman confirmed that specific rules for stablecoin issuers under the GENIUS Act are “nearing completion.”
  • The Conflict: The Fed is moving to block “regulatory arbitrage,” signaling that crypto firms seeking charters will face bank-like scrutiny.
  • The Capital: Bowman advocated for a “bottom-up” recalibration of Basel III, potentially softening requirements for Wall Street while tightening them for digital assets.

Federal Reserve Governor Michelle Bowman issued a stark warning to the digital asset industry Tuesday, telling lawmakers that the implementation phase of the GENIUS Act is imminent. 

In a prepared testimony for the House Financial Services Committee, Bowman signaled that the central bank is finalizing a strict supervisory framework that will force stablecoin issuers to compete on a level playing field as traditional lender…

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