Launchy Regulatory Roundup #60 - Basel Committee Plans Softer Crypto Rules

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Welcome to our 60th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

In Today's Edition:

• Headline: Basel Committee Plans Softer Crypto Rules 👀 

• Global Legal Roundup

• Case Study: Senator Flags Binance.US Over Trump-Linked Token 🔎 

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HEADLINE

Basel Committee Plans Softer Crypto Rules

State of play: The Basel Committee on Banking Supervision is preparing to revise its 2022 guidance on banks’ exposure to crypto assets, signaling a potential shift toward a more favorable stance.

• The update, expected next year, follows rapid growth in stablecoins, now regulated for payments in the US under the GENIUS Act.

• Under current Basel rules, stablecoins are treated like high-risk assets such as Bitcoin or Ether, drawing criticism for ignoring their lower risk profile.

• The upcoming revisions aim to address that issue and better align capital requirements with the actual risk of regulated, asset-backed stablecoins.

• The EU’s MiCA framework already allows stablecoins to receive lighter treatment.

• Meanwhile, other regions like the US and UK are still debating whether to revise before or after implementation.

What’s Next: The Basel Committee is set to release a draft update in early 2026, likely giving stablecoins lighter treatment based on how well they’re backed and regulated.

Why it Matters: Looser rules would open the door for banks to reenter crypto, especially stablecoins. It shows regulators now see these tokens as useful financial tools rather than risky bets.

Our Take: Stablecoins are moving from the fringe to the core of finance, and banks are finally getting a clearer path to join in.

GLOBAL LEGAL ROUNDUP

America:

• 🇺🇲 NY judge grants relief to Multichain liquidators.

• 🇺🇲 Pro-crypto org backs Andrew Cuomo for NYC mayor.

• 🇺🇲 New Hampshire Senate stalls crypto mining deregulation bill.

• 🇺🇲 CZ's lawyer demands 'immediate retraction' from Sen. Warren.

• 🇺🇲 US prosecutors object to crypto policy arguments amid MEV bot trial.

• 🇺🇲 Court upholds ruling that Custodia is not entitled to a Fed master account.

• 🇺🇲 Michelle Bowman among other pro-crypto candidates to lead the Federal Reserve.

• 🇨🇦 Canada advances stablecoin framework.

Europe:

• 🇳🇴 Norwegian tax authority sees 30% jump in crypto reporting.

• 🇫🇷 French gov’t set to review motion to ‘embrace Bitcoin and Crypto.’

Middle East & Africa:

• 🇮🇷 Official says 95% of 427K Iran’s crypto mining devices operate ilegally.

APAC:

• 🇭🇰 Hong Kong's regulator flags digital asset treasury risks.

• 🇨🇳 Solana event shortened amid crypto crackdown in China.

• 🇦🇺 Australia classifies stablecoins, wrapped tokens as financial products.

• 🇲🇾 Malaysia’s central bank sets 3-year roadmap to pilot asset tokenization.

CASE STUDY

Senator Flags Binance.US Over Trump-Linked Token

State of play: Senator Chris Murphy accused Binance.US of corruption for listing USD1, a stablecoin tied to Donald Trump’s World Liberty Financial, shortly after Trump pardoned Binance founder Changpeng “CZ” Zhao.

• Murphy argued the exchange was “promoting Trump crypto” just a week after the pardon, sparking political backlash.

• Binance.US denied any wrongdoing, saying USD1 and WLFI had passed routine listing reviews and were already available on multiple exchanges.

• The company emphasized that its decision was purely business and not political.

Our Take: Even if Binance.US followed procedure, listing a Trump-linked token right after CZ’s pardon was always going to stir trouble. Crypto’s now a political flashpoint, and exchanges have to think as much about optics as regulations.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

• Nic Carter’s read on Debanking Development.

• a16z’s article on Regulate Web3 Apps, Not Protocols.

• Bloomberg’sarticle on Stablecoin as Payments Surge & US Regulation.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.