Pro-crypto Senators are stepping up to challenge outdated bank rules on digital assets. A powerful group, including Senators Cynthia Lummis, Bill Hagerty, Ted Budd, Dan Sullivan, Bernie Moreno, and John Husted, just sent a strong letter urging Congress to fix the Basel Committee's extreme 1,250% risk weight on crypto. They argue this punitive standard was not based on actual risk data and acts more like a de facto ban, forcing banks to hold a full dollar of capital for every dollar of crypto exposure. This keeps crypto holdings artificially low, well under 2% of core capital, and clashes with a technology-neutral future. As the landmark CLARITY Act advances toward a Senate vote, these lawmakers stress that capital rules must evolve to match. Federal Reserve Vice Chair Michelle Bowman has already called the Basel weights unrealistic. Without updated, balanced frameworks, banks risk being sidelined from crypto activities that the new legislation could soon enable. The Senators are calling for an urgent, risk-reflective overhaul that unlocks responsible banking participation in digital assets.

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