U.S. Financial Regulators Bypass Basel Rules for Tokenized Securities

U.S. financial regulators, under the leadership of U.S. President Donald Trump, are opting for a technology-neutral regulatory approach for tokenized assets, bypassing the Basel Accord's treatment of crypto assets. According to PANews, the Basel Committee on Banking Supervision imposes stringent standards on crypto asset risk exposure, with non-compliant financial institutions facing risk weights as high as 1250%. However, the U.S. Federal Deposit Insurance Corporation (FDIC), the Federal Reserve, and the Office of the Comptroller of the Currency (OCC) have adopted an 'America First' strategy in their FAQ on capital treatment for tokenized securities. This approach grants tokenized securities the same legal rights as their non-tokenized counterparts, ensuring equal treatment.This regulatory stance benefits major financial entities such as the New York Stock Exchange (NYSE), Goldman Sachs, Nasdaq, DTCC, BlackRock, BNY Mellon, Citigroup, and JPMorgan Chase. These institutions have initiated pilot projects or platforms for tokenized stocks, funds, and deposits, positioning themselves as potential leaders in this emerging sector.