US Senate Republicans Push for Clear Crypto Capital Rules

Senator Cynthia Lummis led a group of Senate Republicans in sending a letter on May 27 to the Federal Reserve, the FDIC and the Office of the Comptroller of the Currency. The letter urged regulators to develop a technology‑neutral, fair capital framework for on‑balance‑sheet digital assets, criticizing the Basel Committee’s 1,250% risk weight on crypto holdings as a “de‑facto ban.”

The senators cited recent March guidance on tokenized securities and asked regulators to build on that progress while the Senate prepares to advance the CLARITY Act, which would define how the SEC and CFTC oversee crypto markets and permit banks to use digital assets for payments, custody, lending and trading. The group, which also includes Dan Sullivan, Bill Hagerty, Bernie Moreno, Ted Budd and Jon Husted, hopes the legislation can be passed before the November midterm elections, noting that failure would require re‑introduction in the next congressional session.

The push seeks to align capital standards with the actual risk profile of digital assets and to give banks clearer authority to participate meaningfully in the crypto market.