Tag Archives: bloomberg

Basel Committee reviews bank crypto-asset rules amid stablecoin surge: Report

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Global banks may soon take a more favorable view of cryptocurrencies as the Basel Committee on Banking Supervision (BCBS) prepares to revise its landmark guidance on crypto exposure, according to a Bloomberg report published Friday.

Citing sources familiar with the matter, Bloomberg revealed that the Basel Committee’s 2022 guidance on banks’ treatment of crypto will be updated next year to reflect a more accommodating stance. This comes after the initial 2022 standards led many banks to avoid crypto altogether, interpreting the rules as a cautionary signal.

The Basel Committee has recently held talks assessing the appropriateness of its previous rules, which have yet to be fully implemented by major jurisdictions including the United States, United Kingdom, and the European Union.

### The Need for Updated Rules

The surge in stablecoins’ popularity drives the need for new regulations. Stablecoins were recently regulated in the US through the GENIUS Act and are now permitted for payment uses.

Under current Basel rules, stablecoins issued on public blockchains face the same capital charges as higher-risk assets like Bitcoin (BTC) and Ether (ETH). This equivalence has drawn criticism from market participants who argue that regulated, asset-backed stablecoins carry significantly lower risks.

### A Powerful Standard-Setting Body

The Basel Committee is a global organization responsible for setting international standards on bank regulation, focusing on capital adequacy, risk management, and supervision. Its frameworks, such as Basel III, aim to ensure banks worldwide remain stable and resilient — thereby reducing the risk of global financial crises.

### Industry Perspectives

Chris Perkins, president of investment company CoinFund, commented in mid-August that the capital requirements imposed by the Basel Committee create a “chokepoint” restricting the growth of the crypto industry. Perkins stated:

> “It’s a very nuanced way of suppressing activity by making it so expensive for the bank to do activities that they’re just like, ‘I can’t.’”

### Varied Approaches Across Countries

According to the Bloomberg report, some countries, including the US, are proactive in reviewing the standards before implementation to remain ahead of regulatory developments. Others prefer to adopt the current standards first and consider revisions at a later stage.

Notably, the European Union’s Markets in Crypto-Assets (MiCA) Regulation already allows stablecoins to receive capital treatment aligned with their backing, typically in cash and cash equivalents.

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As the Basel Committee moves forward with updating its crypto exposure rules, the banking and crypto sectors alike will be watching closely for changes that may impact how digital assets are integrated into the traditional financial system.
https://cointelegraph.com/news/maybe-a-hed-like-basel-committee-reviews-bank-crypto-asset-rules-amid-stablecoin-surge?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound

US inflation rises to 3% in September — paving way for fed to cut rates next week

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US Inflation Ticks Up to 3% in September, Paving the Way for Federal Reserve Rate Cuts

US inflation edged up in September to 3%, a slightly lower-than-expected figure that clears the path for the Federal Reserve to cut interest rates at its policy meeting next week.

According to the Bureau of Labor Statistics, the Consumer Price Index (CPI) increased by 3% over the past 12 months ending September. This marks the fastest inflation rate since the start of the year and a small rise from August’s 2.9%. Despite this increase, economists polled by Bloomberg had anticipated a slightly higher year-over-year inflation rate of 3.1%.

On a monthly basis, the CPI rose by 0.3%. Core inflation, which excludes the more volatile food and energy prices, also grew by 3% over the last 12 months. This was a slight decline from the previous month’s 3.1%, while economists expected it to remain steady at 3.1%.

The release of September’s CPI report was delayed by more than a week due to the ongoing federal government shutdown, now the second-longest in US history at 23 days with no clear end in sight. The report, originally scheduled for October 15, finally provided insight into inflation trends amid significant economic uncertainty.

“Inflation coming in weaker-than-expected further solidifies a continuation of the Federal Reserve’s rate cutting cycle, at least for the next two meetings,” said Skyler Weinand, Chief Investment Officer at Regan Capital. He added, “Once the government reopens and if we start to see weak unemployment data and the unemployment rate rises precipitously towards 5%, we could expect either a 50 basis point cut for December or the Fed to communicate a string of cuts in 2026.”

Wall Street welcomed the data with cautious optimism. The Dow Jones Industrial Average rose by 66 points, or 0.1%, in premarket trading. However, concerns remain about the accuracy of the consumer inflation report, given the disruption caused by the government shutdown.

The Federal Reserve is widely expected to cut interest rates at its policy meeting next Wednesday, following its first quarter-point reduction since December, which was implemented last month. However, there remains some disagreement among Fed officials on the pace of easing. For instance, Fed Governor Stephen Muir, recently appointed by President Trump, has advocated for a half-point cut, while others, including Christopher Waller, favor a more gradual quarter-point reduction.

Economists are also monitoring any indications that President Trump’s tariffs are beginning to impact consumer prices. As inflation and economic signals evolve, all eyes will remain on the Fed’s upcoming decision and the broader effects of ongoing fiscal policies.
https://nypost.com/2025/10/24/business/us-inflation-rises-to-3-in-september-paving-way-for-fed-to-cut-rates-next-week/