- US senators say current Basel rules unfairly discourage banks from holding Bitcoin and crypto assets.
- The CLARITY Act gains momentum as lawmakers push for clearer digital asset regulations.
- Jamie Dimon warns the CLARITY Act may leave gaps in stablecoin and banking safeguards.
A group of pro-crypto U.S. senators is pushing for changes to banking rules that they say make it difficult for banks to hold digital assets such as Bitcoin. The lawmakers are calling on federal regulators to adopt a clearer and more balanced approach as cryptocurrencies become a larger part of the financial system.
The effort comes as Congress continues debating the CLARITY Act and as regulators in several countries review how banks should handle digital assets. As a result, the discussion over the role of banks in the crypto market has gained renewed attention.
According to the senators, current international banking standards place heavy capital requirements on banks that want exposure to cryptocurrencies. They argue that digital assets are being treated more harshly than other financial products without a strong regulatory basis.
Senators Challenge Basel Crypto Standards
Journalist Eleanor Terrett highlighted the development on X, noting that several senators want regulators to revisit current capital rules.
The effort is led by Senate Banking Subcommittee on Digital Assets Chair Cynthia Lummis and Senator Dan Sullivan. Additionally, Senators Bill Hagerty, Bernie Moreno, Ted Budd, and Jon Husted joined the initiative.
In a letter to Federal Reserve Vice Chair for Supervision Miki Bowman, FDIC Chairman Travis Hill, and Comptroller of the Currency Jonathan Gould, the lawmakers criticized the Basel Committee’s 2022 framework.
“The Basel Committee on Bank Supervision published prudential capital standards for the on-balance sheet treatment of digital assets like bitcoin in 2022 and assigned a 1,250% risk weight—the most punitive classification in the capital framework,” the senators wrote.
They added, “This framework appears to be a blanket penalty assigned by asset category as a de facto ban on banks holding this asset class.”
Related: CFTC Drops No-Deny Policy, Letting Companies Dispute Allegations Publicly
CLARITY Act Gains Momentum
The senators’ push arrives as Congress considers the Digital Asset Market Clarity Act. The proposal would establish a comprehensive federal framework for digital assets.
Additionally, the legislation would define responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Supporters argue that regulatory clarity could strengthen America’s position in digital finance.
The bill recently reached another milestone after the Senate placed it on its legislative calendar. Consequently, lawmakers could soon begin floor debate following months of negotiations and bipartisan committee support.
Senator Cynthia Lummis emphasized the legislation’s market-driven approach. “The Clarity Act doesn’t pick winners. It creates a level field where the best ideas win. That’s how America is supposed to work.”
Critics Warn of Regulatory Gaps
However, not everyone supports the current version of the bill. JPMorgan Chase CEO Jamie Dimon recently voiced strong opposition during an appearance on Fox Business.
Dimon argued that the legislation lacks sufficient safeguards for the financial system. Moreover, he raised concerns about stablecoins, anti-money laundering requirements, and Bank Secrecy Act compliance.
“It allows cryptocurrency firms to effectively pay interest on deposits, stablecoins, or something like that, without the protection that they should have,” Dimon said.
He also warned that the proposal lacks key legal protections. “It has almost no legal protections… so the banks will not accept it that way,” he stated.
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