🚨NEW: A group of pro-crypto senators is pressing U.S. banking regulators to establish capital requirements for banks’ crypto activities. In a new letter, @SenatorHagerty, @SenDanSullivan, @SenLummis, @berniemoreno, @SenJonHusted and @SenTedBuddNC argue that the Basel Committee’s 2022 capital framework effectively functioned as a ban on banks holding digital assets on their balance sheets with a 1,250% risk weight for assets like bitcoin, and that regulators should adopt a new U.S. framework that is more balanced. The senators point to regulators’ March guidance that tokenized securities should receive the same capital treatment as their underlying assets and argue the same tech neutral principle should apply more broadly to digital assets. The push comes as Congress considers the Clarity Act, which would authorize banks to engage in a broader range of digital asset activities, raising questions about whether current capital rules are compatible with that framework. It also comes as global regulators revisit the Basel crypto capital standards.(Eleanor Terrett)