The European Commission may allow commercial banks to hold stablecoins and other cryptocurrencies

ChainCatcher news, according to a leaked document, the European Commission aims to make it easier for commercial banks to hold stablecoins and tokenized assets. The leaked document attempts to soften the European Parliament's hardline stance.

Previously, EU lawmakers indicated that they wanted to see "prohibitive" restrictions to prevent cryptocurrency risks from spreading to the commercial banking system, with plans to assign a 1250% risk weight to cryptocurrencies to impose the maximum possible capital requirements on lenders wishing to hold digital assets.

However, under the latest proposal, the risk weight for stablecoins pegged to any value, such as gold and other non-physical assets, will be reduced to 250%. Tokenized assets and stablecoins based on fiat currencies like the US dollar will be treated as baseline instruments unless there are additional credit or market risks. This aligns with the upcoming regulation on the crypto asset market (MiCA) in the EU, which will take effect in July 2024 and will regulate stablecoin issuers, requiring them to hold adequate reserves. (CoinDesk)