USDT, USDC in Danger as BIS Only Allows Licensed Stablecoin Issuance

On July 17, the Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) released its final disclosure report on banks' exposures to crypto assets. The report requires that banks will need to disclose qualitative and quantitative reports on their crypto-related activities and liquidity requirements in order to remain stable. In addition, the report tightens standards for stablecoins that do not require licensing, so all stablecoins issued on blockchains that do not require licensing, such as USDT and USDC, are in danger of being heavily regulated. It also tightens the standards for certain stablecoins that will receive favorable “Type 1b” regulatory treatment.