The European regulator requires to limit the reserves of fiat-backed stablecoins
The Basel Committee on Banking Supervision (BIS), after the collapse of the UST stablecoin, stated that in order to maintain financial stability, banks should have a limit on the holdings of unsecured crypto assets. The riskiest class of crypto assets, which includes non-backed conventional reserves or asset-pegged stablecoins, will be capped at 1% of Tier 1 capital, the document says. For large banks like JP Morgan Chase, 1% Tier 1 capital can be in the…