Sen. Lummis urges end to 1250% risk weight for digital assets

U.S. Senator Cynthia Lummis, along with fellow Republican lawmakers, has urged financial regulators to eliminate the 1250% risk weight applied to digital assets under the Basel Framework, CoinDesk reported. They argue that the current high risk weight excessively restricts banks from participating in the digital asset market and have called for a new capital regulatory framework to allow for more active involvement. Under the Basel Framework, certain crypto assets are subject to a 1250% risk weight, a rule the industry has criticized for unduly limiting banks' ability to hold digital assets and enter related business ventures.