TechFlow reports that the Basel Committee on Banking Supervision (BCBS) proposed revising standards in a consultation paper released Thursday, allowing stablecoins to be treated as lower risk compared to unsecured cryptocurrencies such as Bitcoin.
The draft outlines proposed amendments, stating that cryptoassets with an "effective stabilization mechanism" would qualify for "Group 1b preferential regulatory treatment."
This means stablecoins could be subject to relatively lighter regulatory requirements, unlike stricter rules applied to digital assets like Bitcoin.
Currently, to qualify for this favorable regulatory treatment, stablecoins must be "readily exchangeable," issued by regulated entities, and have robust redemption rights and governance structures.
