📣 News Flash! The Basel Committee has been busy, folks! They've been making policy decisions about banks' crypto exposure. It's all part of the Basel III reforms, aimed at making EU banks tougher than a two-dollar steak. They've proposed a disclosure framework for banks' crypto assets, with the goal of boosting transparency and encouraging market discipline.

Crypto is now in the high-risk Group 2 set of assets, meaning banks need capital equal to their crypto exposure. Stablecoins? They've got a new 1b designation, but if they've got "ineffective stabilisation mechanisms", they're in Group 2.

The committee also discussed the implications of banks issuing stablecoins, concluding that the risks are broadly covered by the Basel Framework. But they'll keep an eye on it, just like a hawk on a mouse.

In addition to the Basel standards, stablecoin issuers have to meet new Markets in Crypto-Assets (MiCA) regulations. Changes to Basel III standards will kick in on Jan. 1, 2026. So, buckle up, crypto world! It's going to be a wild ride! 🎢