Senator Cynthia Lummis and a group of Republican lawmakers have sent a letter to U.S. financial regulators, urging fair capital treatment for digital assets held on bank balance sheets. The lawmakers seek clear guidance on how banks should account for crypto assets in their capital adequacy calculations.
Currently, the absence of specific rules forces banks to apply overly conservative capital charges, often treating digital assets as high-risk or intangible items. This uncertainty discourages traditional financial institutions from expanding crypto custody and lending services. Lummis, a known crypto advocate in Congress, argues that such treatment does not match the actual risk profile of digital assets and hampers innovation.
The letter reflects ongoing legislative initiatives to integrate digital assets into mainstream finance under transparent rules, aiming to keep the U.S. competitive.