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5 Jun 2026, 12:05

Indian Rupee Depreciation Risk Tempered by Policy Support, Says BBH

BitcoinWorld Indian Rupee Depreciation Risk Tempered by Policy Support, Says BBH The Indian Rupee’s depreciation risk is being moderated by ongoing policy support from the Reserve Bank of India (RBI), according to a recent analysis by Brown Brothers Harriman (BBH). The currency has faced persistent pressure from global factors including a strong US dollar and volatile capital flows, but domestic policy measures are providing a crucial buffer. BBH Analysis Highlights Policy Backstop BBH strategists note that the RBI has actively intervened in the forex market, both through direct dollar sales and by tightening liquidity, to prevent excessive volatility in the USD/INR pair. This approach, combined with India’s relatively strong macroeconomic fundamentals—including a healthy foreign exchange reserve buffer and moderating inflation—has helped cap the rupee’s downside. The analysis suggests that while external headwinds remain significant, the policy framework in place reduces the likelihood of a disorderly depreciation. Global Context and Domestic Resilience The rupee, like many emerging market currencies, has been caught in the crosscurrents of a hawkish Federal Reserve and geopolitical uncertainty. However, India’s improving current account deficit, robust services exports, and steady foreign direct investment inflows provide a structural cushion. BBH’s report emphasizes that the RBI’s credibility and proactive stance are key factors in maintaining market confidence. The central bank’s ability to smooth volatility without committing to a specific exchange rate level gives it flexibility to respond to changing conditions. Implications for Investors and Importers For businesses and investors exposed to currency risk, the BBH assessment offers a tempered outlook. While further depreciation is possible—particularly if the dollar strengthens further or global risk appetite deteriorates—the policy support suggests that sharp, panic-driven moves are less probable. Import-dependent sectors may still face cost pressures, but the RBI’s actions help prevent the kind of extreme volatility that disrupts corporate planning. Exporters, meanwhile, may benefit from a moderately weaker rupee without the unpredictability of a freefall. Conclusion BBH’s analysis reinforces the view that the Indian Rupee’s depreciation risk, while present, is being effectively managed through a combination of policy intervention and strong fundamentals. The outlook remains cautiously stable, with the RBI playing a central role in anchoring market expectations. For market participants, the key takeaway is that India’s policy framework provides a meaningful degree of protection against external shocks, even if it cannot fully insulate the currency from global trends. FAQs Q1: What specific policy measures is the RBI using to support the rupee? The RBI has been conducting direct dollar sales from its foreign exchange reserves to prevent sharp depreciation. It has also tightened domestic rupee liquidity, making it more expensive to short the currency, and has used regulatory measures to manage capital flows. Q2: Is the Indian Rupee expected to weaken further? BBH suggests that while depreciation risk remains due to global factors like a strong US dollar, policy support is likely to limit the extent of any decline. The rupee may continue to experience gradual pressure, but disorderly moves are less likely. Q3: How does this affect Indian importers and exporters? Importers face higher costs if the rupee weakens, but the RBI’s intervention reduces the risk of sudden, large jumps in the USD/INR rate. Exporters may benefit from a more competitive exchange rate, provided the depreciation remains gradual and predictable. This post Indian Rupee Depreciation Risk Tempered by Policy Support, Says BBH first appeared on BitcoinWorld .

5 Jun 2026, 12:01

JPMorgan and Citi’s Tokenized Deposit Network: The Bank Answer to Stablecoin Payments

America’s largest banks are coalescing around a shared tokenized-deposit network that aims to give corporates programmable, instant settlement in dollars—without leaving the regulated banking perimeter. If it works as designed, it could absorb a chunk of stablecoin payment flows while bridging to public blockchain liquidity when compliance allows. The plan, led by The Clearing House with support from JPMorgan and Citigroup among others, targets a first-half 2027 debut. For treasurers and fintechs, that timeline is close enough to merit planning, but far enough to keep multi-rail optionality with existing stablecoin partners. This piece unpacks how bank-issued tokenized deposits differ from stablecoins, where interoperability is already emerging, what value this could unlock for businesses, and which risks remain unresolved. PointDetailsNetwork launch windowMajor U.S. banks back a tokenized-deposit network to be operated by The Clearing House, with a target start in H1 2027 The Block (reporting on WSJ) .What’s a tokenized deposit?A on-chain representation of a commercial bank deposit—redeemable 1:1 at the issuing bank, subject to KYC/AML. It stays within bank supervision, unlike many public stablecoins.Public-chain links are formingA May 2026 pilot redeemed a tokenized Treasury fund on the XRP Ledger in under five seconds, tying public settlement to interbank dollar delivery outside bank hours CoinDesk .Liquidity backdropDistributed tokenized RWAs reached ~$33.7B, with U.S. Treasuries near ~$15.35B; combined distributed + represented tokenized assets were ~ $406B as of May 2026 Rekord – 'State of RWA 2026' .Bank-grade tokenized cash + fundsJ.P. Morgan launched an Ethereum-based tokenized government money-market fund (JLTXX), seeded with $100M and positioned to meet stablecoin reserve standards under the GENIUS Act J.P. Morgan Asset Management . What tokenized deposits are—and aren’t Editor's note: Pilots like the OUSG redemption on XRPL and early conversations around tokenized MMFs convinced me that the technical stack is ready; the gating factor is governance and policy. In workshops with payment providers, the most useful pattern was multi-rail design—treat tokenized deposits, stablecoins, and RTP as interchangeable back-ends, decided by rules. That mindset reduced vendor lock-in and made risk teams more comfortable. — Karim Daniels Tokenized deposits are digital representations of funds you already hold at a regulated bank. They mirror a customer’s deposit liability on a shared ledger, enabling near-instant transfer and automated workflows. A stablecoin, by contrast, is typically issued by a nonbank entity against reserve assets and circulates openly on public chains. Core differences vs stablecoins Issuer and supervision: Tokenized deposits come from banks subject to banking supervision and deposit rules. Stablecoins may be issued by money transmitters or trust companies, with evolving oversight. Redeemability: A tokenized deposit is a direct claim on a bank deposit account. Stablecoin redemption depends on the issuer’s reserve program and terms. Perimeter and access: Bank tokens will likely be permissioned, restricting use to KYC’d entities and Treasury-approved corridors. Stablecoins are broadly composable on public chains. Programmability: Both can be programmable. Banks will focus on controlled programmability (rules, whitelists, time locks) that meet compliance requirements. Pro tip: If your payment flow requires open DeFi composability today, expect a hybrid model for the next few years: public stablecoins for open ecosystems; tokenized deposits for bank-permissioned, higher-value B2B corridors. Inside the Clearing House initiative: architecture, access, timeline The Clearing House (TCH)—operator of ACH, CHIPS, and RTP—has emerged as the prospective hub for a shared tokenized-deposit rail. Reporting in June 2026 indicated JPMorgan, Citigroup, Bank of America, and Wells Fargo are among backers, with a first-half 2027 go-live targeted The Block (reporting on WSJ) . Probable network design Permissioned ledger: Participation restricted to supervised institutions and their KYC’d clients, preserving auditability and sanctions compliance. On-us and off-us settlement: Instant within-network transfers; interbank netting or atomic settlement mechanisms between participants. Programmable controls: Payment conditions (escrow, delivery-vs-payment, spend controls) encoded at the token or workflow level. Bridges to existing rails: Integration points to Fedwire/CHIPS/RTP/ACH so balances can move between tokenized and traditional accounts. Who gets access Phase 1: Large corporates, financial institutions, and regulated fintechs integrating via bank APIs or network SDKs. Phase 2: Potential expansion to mid-market and payment facilitators as risk policies, limits, and messaging standards stabilize. Businesses should expect onboarding similar to high-limit RTP programs: due diligence, whitelisting, transaction monitoring, and contractual controls on use cases. Interoperability is not optional: public chains and RWA liquidity Even if the bank network is permissioned, commercial demand rarely lives on one rail. The last 18 months showed credible experiments linking bank-grade assets and public blockchains. Cross-border redemption: In May 2026, Ondo Finance, JPMorgan’s Kinexys, Mastercard and Ripple processed a redemption of Ondo’s tokenized Treasury fund (OUSG) that settled on the XRP Ledger in under five seconds—while coordinating interbank dollar delivery outside normal hours CoinDesk . Tokenized funds for treasuries: J.P. Morgan Asset Management launched an Ethereum-based tokenized government money-market fund (ticker JLTXX) in May 2026, seeded with $100 million and positioned to satisfy stablecoin reserve requirements noted under the GENIUS Act J.P. Morgan Asset Management . RWA scale-up: Tokenized real-world assets reached about $33.7B distributed on-chain as of May 2026, with tokenized U.S. Treasuries near $15.35B, and an estimated ~$406B when including distributed + represented tokenized assets Rekord – 'State of RWA 2026' . These milestones suggest a future in which bank tokens interoperate—directly or via gateways—with public chains for liquidity, settlement finality, or collateral use, while preserving compliance. The practical question for product teams is how to layer controls: wallet whitelists, travel-rule messaging, and policy-based bridges. Who wins early: practical use cases for enterprises and fintechs High-velocity B2B settlement Marketplaces and PSPs: Move escrowed funds instantly to sellers on weekends with clear settlement finality. Replace a two-day ACH payout with programmable release conditions. Supply-chain finance: Combine invoice tokenization and tokenized deposits for delivery-versus-payment on milestones, lowering dispute risk. Treasury operations Intraday liquidity: Sweep idle balances between operating accounts and tokenized deposits to compress cash buffers without losing availability. Yield adjacency: Keep operating cash on a bank token rail while parking reserves in tokenized funds like JLTXX via bank-connected channels, subject to your policy and regulation J.P. Morgan Asset Management . Cross-border and after-hours Intercompany flows: Settle between subsidiaries across time zones with programmable hold/release and bank-grade audit trails. Pilot corridors: Leverage emerging links to public chains for last-mile delivery where bank coverage is thin, as pilots like the OUSG redemption on XRPL hint CoinDesk . Pro tip: Run a sandbox sprint mapping two to three payment journeys (payouts, supplier, intercompany). Define what “instant” means for your risk team—credit limits, sanctions checks, and reversal policies—before you write your first API call. Regulation, governance, and the policy edge Tokenized deposits sit inside bank charters and established prudential oversight. That does not remove risk, but it changes where risk lives. Instead of reserve attestations and issuer bankruptcy remoteness (familiar stablecoin questions), attention shifts to bank credit exposure, operational resilience, and network governance. Policy considerations Stablecoin statutes vs bank money: Several jurisdictions are considering or advancing stablecoin frameworks. A bank token rail may sidestep some licensing constraints for corporate users but could limit open composability. Reserve quality and tokenized funds: The emergence of tokenized government money-market funds like JLTXX—positioned to qualify under the GENIUS Act language—signals how bank-grade liquidity might be instrumented on-chain for reserves and treasury use cases J.P. Morgan Asset Management . Data and privacy: Permissioned ledgers promise auditability but raise questions on data sharing, message standards, and portability between banks. Expect strong KYC/AML, sanctions screening, and travel-rule messaging. Programmability will likely include policy guardrails (allow/deny lists, purpose codes, jurisdictional gates). Operational checklist: preparing for bank token rails For CFOs and treasurers Define use cases: Weekend payouts, supplier pre-funding, cross-entity netting. Rank by financial impact and risk tolerance. Liquidity policy: Clarify how much working capital can sit in tokenized form intraday vs end-of-day; set sweep rules. Counterparty diversification: Avoid single-bank dependence; prepare for multi-bank token issuance and redemption. For product and engineering Wallet and key management: Decide between bank-custodied wallets, enterprise MPC, or HSM-managed keys. Map entitlements and segregation. Messaging standards: Align on ISO 20022/JSON schemas that carry compliance data alongside token transfers. Policy engines: Build allowlist/denylist services, velocity controls, and programmable escrow modules. Reconciliation: Implement dual-ledger reconciliation across tokenized balances and traditional accounts. Risk and compliance Access controls: Role-based approvals for mint/burn/transfer; four-eyes for large movements. Monitoring: Real-time sanctions and anomaly detection tuned for instant settlement windows. Business continuity: Failover plans if the token network, a bridge, or a participant bank goes down. Pro tip: Simulate a “stuck transfer” day. How do you reverse, re-route, and notify counterparties across tokenized and traditional rails without losing audit traceability? Competition and complements: banks vs USDC/PYUSD and legacy rails Tokenized deposits will compete with, and sometimes complement, public stablecoins and real-time payments (RTP). Each rail optimizes for different trade-offs. AttributeTokenized Deposits (TCH)Public Stablecoins (e.g., USDC/PYUSD)RTP/ACH/WiresIssuer liabilityDirect bank deposit claimIssuer reserve claim per T&CsBank liabilities on existing railsAccessPermissioned (KYC’d entities)Open public-chain addresses (subject to issuer controls)Bank-account holdersSettlement windowNear-instant, 24/7 (network design-dependent)Instant on-chain; off-ramps varyRTP instant; ACH batch; wires business hoursProgrammabilityControlled, policy-richHighly composable in DeFiLimited native programmabilityCross-chain reachVia permissioned gateways and selected bridgesNative to multiple chains/bridgesNoneCompliance framingWithin banking supervisionEvolving, issuer-specificWell-established A pragmatic approach for many enterprises will be multi-rail orchestration: route by geography, counterparty KYC posture, cost, and speed; hold balances where policy permits and yield is acceptable. DefiLlama chart of on‑chain RWA market cap (~$28.6B) and recent growth — visual evidence of the tokenized‑asset base banks aim to serve with tokenized deposit rails. — Source: DefiLlama Research Risks and open questions to watch Network fragmentation: If banks deploy divergent token standards or controls, interoperability lags and benefits dilute. Operational concentration: A central hub introduces single points of failure—even with robust redundancy. Counterparty exposure: Tokenized deposits are still bank exposures; diversify issuers and set intraday and end-of-day limits. Bridge risk: Public-chain links invite smart-contract, oracle, and policy-enforcement risks; insist on transparent controls and clear liability. Privacy vs auditability: Fine-grained programmability can reveal workflow metadata; balance reporting needs with data minimization. Regulatory drift: Stablecoin rules and bank guidance may evolve unevenly by jurisdiction, complicating cross-border flows. Mistakes to avoid: Assuming instantaneous liquidity equals finality across all participants; confirm final settlement semantics bank-by-bank. Underestimating onboarding time; permissioned rails still require rigorous KYC, legal agreements, and systems certification. Building only for one rail; design abstractions so you can pivot between tokenized deposits, stablecoins, and RTP as policy or economics change. Stay close to the signal Institutional payments are changing fast. For ongoing coverage of bank tokenization, stablecoin policy, and real-world pilots, you can follow updates from Crypto Daily at cryptodaily.co.uk . Frequently Asked Questions Are tokenized deposits the same as a stablecoin? No. A tokenized deposit is a claim on funds held at a commercial bank, typically on a permissioned ledger. A stablecoin is issued by a nonbank or specialized entity against reserves and circulates on public blockchains. When could the network go live? Reporting in June 2026 indicated a target launch in the first half of 2027 for a tokenized-deposit network run by The Clearing House and backed by major U.S. banks The Block (reporting on WSJ) . Timelines can shift based on testing and approvals. Will my business need crypto wallets? Probably some form of enterprise wallet, but many banks will abstract key management through custodial or MPC solutions. Expect role-based controls, whitelisting, and audit trails aligned to your existing treasury policies. Can tokenized deposits connect to public blockchains? Yes, via permissioned gateways or approved bridges. Interop is already being tested, such as a May 2026 pilot that redeemed a tokenized Treasury fund on the XRP Ledger in under five seconds while coordinating bank dollar delivery CoinDesk . What’s the advantage over RTP or ACH? Programmability and 24/7 settlement with bank-grade controls. Tokenized deposits can embed escrow, conditional release, and policy enforcement natively. That said, RTP may still suffice for many domestic, low-complexity payments. How does this affect stablecoin issuers? Bank tokens may capture compliant B2B flows and reserves management, while public stablecoins retain an edge in open crypto-native ecosystems. Expect coexistence, with bridges and integrations blurring lines over time. Is there yield on tokenized deposits? Tokenized deposits themselves reflect demand deposits and typically do not carry yield. However, treasurers may pair them with tokenized money-market funds such as JLTXX when policy permits J.P. Morgan Asset Management . Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

5 Jun 2026, 11:30

JPMorgan, Citi and BofA plan blockchain deposit network for 2027

JPMorgan Chase, Bank of America, and Citigroup are preparing to launch a shared tokenized deposit network that is expected to go live in 2027, marking one of the most significant coordinated moves by major US banks into blockchain-based settlement infrastructure. According to a WSJ report , the project is being developed alongside other large financial institutions, including Wells Fargo, through The Clearing House, the US banking industry’s privately operated payments network. The system is expected to allow commercial bank deposits to be represented digitally on a shared ledger, enabling real-time transfers between participating banks without relying on traditional batch settlement cycles. A shared banking network built on tokenized deposits At the centre of the initiative is the concept of tokenized deposits, which are not new cryptocurrencies or externally issued stablecoins but rather a representation of existing commercial bank deposits in digital form recorded as liabilities on the balance sheets of issuing banks such as JPMorgan Chase or Bank of America. The planned network will allow these tokenized deposits to move instantly between institutions. If successful, transactions that normally take hours or even a full business day under legacy systems could be settled within seconds, operating continuously on a 24-hour, seven-day basis. The Clearing House will serve as the infrastructure operator for the system, extending its role in US payments clearing into a blockchain-based environment. This structure keeps the network inside the regulated banking system, rather than shifting transactions onto public crypto networks. A coordinated response to stablecoins and crypto payment rails The decision by major banks to build a shared tokenized system is closely linked to the rapid growth of blockchain-based payment instruments outside traditional finance. Stablecoins such as USD Coin and USDT have grown into widely used settlement tools in crypto markets, enabling fast and global transfers of dollar-denominated value without direct reliance on bank payment rails. Bank executives involved in the initiative have positioned tokenized deposits as a direct response to this trend. Instead of allowing deposit-based money to flow into external digital payment systems, banks are building their own blockchain-enabled infrastructure that retains funds within regulated institutions. Under the planned model, every tokenised deposit remains fully backed by actual bank deposits to keep the system aligned with existing regulatory frameworks and preserves the role of commercial banks as the primary custodians of dollar liquidity. Infrastructure design and institutional focus The network is being developed as a shared infrastructure layer rather than a consumer-facing product. Initial usage is expected to focus on large institutional clients, including multinational corporations and treasury departments managing high-volume cash flows. These users often move large sums across multiple banking relationships and jurisdictions. Under the current system, such transactions rely on correspondent banking networks and cut-off settlement windows. The new tokenised system is designed to remove these delays by enabling continuous liquidity movement across participating banks. The Clearing House has long handled high-value payment processing in the United States, but this expansion introduces a blockchain-based settlement mechanism into its core operations. The system is being described internally as a connective “bridge” between traditional banking ledgers and emerging digital settlement technologies. The network is currently under development, with industry-wide expectations pointing to pilot phases before broader deployment. The target launch timeline is set for the first half of 2027, although internal testing and phased integration across participating banks will likely take place beforehand. The post JPMorgan, Citi and BofA plan blockchain deposit network for 2027 appeared first on Invezz

5 Jun 2026, 11:20

US Dollar Outlook: TD Securities Sees Dovish Risk in Upcoming Payrolls Report

BitcoinWorld US Dollar Outlook: TD Securities Sees Dovish Risk in Upcoming Payrolls Report The US dollar is facing a pivotal moment as markets turn their attention to the upcoming payrolls data, with analysts at TD Securities suggesting the report could trigger a dovish reaction from the Federal Reserve. In a recent note, the firm outlined scenarios where weaker-than-expected job numbers might reinforce expectations of rate cuts, potentially weighing on the greenback. Payrolls as a Policy Catalyst The monthly employment report, due for release on Friday, has become a key data point for the Federal Reserve as it navigates the final stages of its tightening cycle. TD Securities economists argue that a softer reading in nonfarm payrolls, particularly if accompanied by a slowdown in wage growth, could embolden dovish members within the Fed. This, in turn, might lead to a repricing of interest rate expectations, with markets pricing in a higher probability of rate cuts later this year. Historically, the dollar has shown sensitivity to labor market data, especially during periods of policy uncertainty. A miss on payrolls could accelerate the currency’s recent decline, which has already been pressured by cooling inflation and mixed economic signals. The firm’s analysis suggests that a figure below 150,000 new jobs, compared to consensus estimates, would be the most impactful for a dovish shift. Market Implications and Trader Positioning For forex traders, the stakes are high. The dollar index (DXY) has been trading in a narrow range, reflecting market indecision ahead of the data. A dovish payrolls report could break this range to the downside, potentially pushing the dollar toward key support levels against the euro and Japanese yen. TD Securities advises clients to watch for a breakdown below the 104.00 level in the DXY as a confirmation of bearish momentum. Conversely, a strong payrolls number could reverse the recent narrative, supporting the dollar and delaying expectations of policy easing. However, the firm leans toward the view that the risks are skewed to the downside for the greenback, given the broader economic backdrop of slowing growth and easing price pressures. Why This Matters for Investors The payrolls report is not just a data point; it is a barometer for the health of the US economy and a guide for future monetary policy. For investors holding dollar-denominated assets, a dovish reaction could mean lower yields and a weaker currency, affecting returns on bonds and equities. For international traders, the dollar’s direction influences commodity prices, emerging market currencies, and global trade dynamics. Understanding the potential outcomes helps market participants position themselves proactively, rather than reacting to volatility after the fact. TD Securities’ analysis provides a framework for interpreting the data through a policy lens, emphasizing the importance of context over headline numbers. Conclusion As the market awaits the payrolls release, the US dollar stands at a crossroads. TD Securities’ forecast of a potential dovish reaction underscores the delicate balance the Fed must strike between controlling inflation and supporting employment. Whether the data confirms or challenges this view, the report is set to be a defining moment for currency markets in the near term. Traders should prepare for heightened volatility and consider the implications for their portfolios. FAQs Q1: What is a dovish reaction in the context of the US dollar? A dovish reaction refers to market expectations that the Federal Reserve will adopt a more accommodative monetary policy, typically by cutting interest rates. This tends to weaken the dollar as lower rates reduce its yield appeal. Q2: How do payrolls data affect the Federal Reserve’s decisions? The monthly payrolls report is a key indicator of labor market health. Strong job growth may lead the Fed to keep rates higher for longer to prevent overheating, while weak data could prompt rate cuts to stimulate the economy. Q3: What should traders watch for in the upcoming payrolls report? Traders should focus on the headline nonfarm payrolls number, wage growth (average hourly earnings), and the unemployment rate. A combination of weak job growth and slowing wages would be most likely to trigger a dovish market response. This post US Dollar Outlook: TD Securities Sees Dovish Risk in Upcoming Payrolls Report first appeared on BitcoinWorld .

5 Jun 2026, 11:05

Bitcoin slides, stocks rally, gold shines over the past year

More on Bitcoin USD, Gold Spot Price, etc. Bitcoin Whales Are Thrashing Around. What's Going On? Yes, This Feels Like 1999 - There's Just One Problem Gold Market Commentary: Hiking Up A Volcano AM Markets Need To Know: Switch funding round, JPM upgrades Tesla, and more Stock index futures fall as investors await key labor data

5 Jun 2026, 11:00

US Senators Press Bank Regulators For ‘Fair’ Crypto Capital Rules

A group of Senate Republicans is pressing bank regulators to build on recent regulatory progress by creating a clearer capital framework for crypto activities and asset treatment. US Senators Call For Clear Crypto Capital Rules On Thursday, Senate Banking Subcommittee on Digital Assets Chair Cynthia Lummis and Senators Dan Sullivan, Bill Hagerty, Bernie Moreno, Ted Budd, and Jon Husted shared a recent letter urging key financial agencies to move toward “clear and fair” capital rules for banks engaged in crypto asset activities. The letter, addressed to Federal Reserve Vice Chair for Supervision Miki Bowman, Federal Deposit Insurance Corporation (FDIC) Chairman Travis Hill, and Comptroller of the Currency Jonathan Gould, criticized the international Basel Committee on Bank Supervision’s capital standards, which gave “the most punitive classification in the capital framework” to crypto assets. Notably, the standard assigned a 1,250% risk weight, used to determine how much a bank must hold against a certain asset, on crypto assets. To the senators, “This classification was not derived from a calibrated assessment of the actual risk profile of digital assets. Instead, it “appears to be a blanket penalty assigned by asset category as a de facto ban on banks holding this asset class, in direct tension with a technology-neutral approach” that agencies like the Office of the Comptroller of the Currency (OCC) and the FDIC have disclosed over the past year. The lawmakers applauded the regulatory agencies for their recent interagency guidance on tokenized securities, which clarified the capital treatment of these assets. In March, the FDIC, the OCC, and the Federal Reserve jointly said that tokenized securities should generally receive the same capital treatment as their non-tokenized counterparts, affirming that capital treatment should reflect the risk characteristics of the underlying asset, not the technology used to record ownership. “That principle should apply consistently—including to other digital assets,” the letter stated. Citing this position and recent progress on the crypto market structure bill, which would expand banks’ ability to engage in balance-sheet crypto asset activities, the senators urged the FDIC, OCC, and Federal Reserve to begin developing a new capital framework for such activities. Top Regulators Shift To ‘Risk-Based’ Supervision The senators’ call for new crypto capital rules came as the three regulators testified before the House Financial Services Committee on Thursday morning, updating lawmakers on their broader effort to revisit and ease several bank rules implemented after the 2008 financial crisis. In prepared remarks, the FDIC chair noted that the agency is implementing several changes to reform its approach to a more “effective and efficient” supervisory framework that continues to support the safety of individual institutions and the broader system. Hill stated that strong capital standards play a critical role in ensuring a resilient banking system , while driving economic growth and supporting their customers. Regarding crypto assets, he stated that the agency has issued several proposed rules to regulate and oversee subsidiaries of FDIC-supervised Insured depository institutions (IDIs) approved to issue payment stablecoins under the GENIUS Act. Similarly, the OCC Chief affirmed that it is “returning to risk-based supervision rooted in law and emphasizing examiner judgment, not arbitrary checklists,” and reviewing past supervisory criticisms and enforcement actions. “Our job is to facilitate, not stymie, responsible innovation,” Gould said, adding that “Our banking system will only remain relevant and trusted if it resists pressures to deny access based on political or religious beliefs or lawful business activity. We have made considerable progress in reviewing the activities of the largest national banks and are investigating complaints of alleged debanking, consistent with the President’s executive order.”