- ECON commissioners come to an agreement on capital issues
- They are ready for a final decision in the European Parliament on June 30
European Union comes to a political agreement on new bank capital legislation. Earlier, some parliamentarians demanded that traditional institutions be banned from using unsecured cryptocurrency.
In a tweet, ECON (European Parliament Committee on Economic and Monetary Affairs) said that negotiators had reached a consensus. But they promise to reveal details later.
The ECON committee includes representatives of the European Parliament, delegates of national governments, and members of the European Commission. They first proposed new bank capital rules back in 2021.
The gist of the deal concerns new rules by which banks assess corporate and home loan risk. Including whether banks can accept crypto-assets as collateral.
The Bezell Committee is currently continuing work on a global set of crypto-banking rules. But some published details suggest that the EU will take a tough stance on this issue. They plan to assign this capital the maximum possible risk weight of 1250%.. This is the percentage of collateral that banks must provide to their cryptocurrency assets.
There will also be a final meeting of the European Parliament on June 30 on the regulation of cryptocurrencies. Industry representatives are keeping a close eye on this event.