According to Bloomberg, the Basel Committee on Banking Supervision, the main international body that sets global banking standards, is reviewing the virtual currency rules it introduced in 2022. The standard required banks to hold a large amount of capital for every dollar of virtual currency they held.
As a result, most banks have moved away from digital assets completely. But now, as stablecoins grow rapidly and become more important in global payments, regulators are rethinking their approach.
Changing stablecoin landscape
Stablecoins are digital tokens designed to hold stable value and are often tied to the U.S. dollar or another fiat currency. They have become the backbone of cryptocurrency transactions and are increasingly used in global commerce. According to data from CoinMetrics, stablecoin transaction value will reach over $9 trillion in 2024, surpassing PayPal’s annual total transaction value. This explosive growth is one reason regulators are paying close attention.
🔥 Big: Stablecoins processed $46 trillion in transactions in the past year. That’s nearly three times the transaction volume of Visa and looms large over the ACH network that underpins U.S. banking. pic.twitter.com/BwLdjzkTGv
— Cointelegraph (@Cointelegraph) October 23, 2025
Under the original Basel framework, most crypto assets were treated as high risk and placed 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 more regulated, financial institutions argue that not all digital assets carry the same risks. The US, in particular, is pushing for a more balanced approach that allows banks to safely handle stablecoins without facing excessive capital burdens.
Regulators around the world are reviewing banking rules on holding crypto assets, particularly stablecoins, which are set to take effect next year. The original Basel standards from 2022 imposed heavy capital requirements, causing many banks to avoid cryptocurrencies. This review aims to update these rules accordingly…
— Wu Blockchain (@WuBlockchain) October 31, 2025
A real-world example highlights the problem. JPMorgan Chase recently launched its own blockchain-based payment system called JPM Coin, which uses tokenized deposits to instantly move funds between customers. Although it is not a public stablecoin, it shows how traditional finance and blockchain are merging. Updates to the Basel standards could encourage more banks to follow suit and safely use digital assets in their operations.
The purpose of the review is not to relax the rules, but to make them more practical and relevant to today’s market. Regulators want to support innovation while maintaining financial stability. More central banks are considering central bank digital currencies (CBDCs), which could further blur the line between traditional money and digital money.
Stablecoin regulation details
Australia has officially classified stablecoins and wrap tokens as financial products, placing them under the national regulatory framework. This means that companies offering these digital assets must obtain a license from the Australian Securities and Investments Commission.
🚨BREAKING: 🇦🇺Australia now classifies stablecoins and wrap tokens as financial products and requires providers to obtain a license. pic.twitter.com/PNz2nomyxp
— Coin Bureau (@coinbureau) October 29, 2025
The move aims to protect investors, ensure transparency and bring more accountability to the growing crypto market, and shows regulators are serious about integrating digital assets into the mainstream financial system.
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