The EU sees crypto with a mixture of trepidation and optimism, but still has a unique chance to transform the bloc into a world leader in the technology depending on how it regulates it. 

A landmark 66-page report on the securitisation market published ahead of a pivotal European Commission (EC) consultation has been branded a “Titanic-like” disappointment by many in the industry

Impressive momentum has built up behind the effort by the world’s financial regulators to create coherent classifications to define what economic activities should truly count as sustainable, but this could also be setting the scene for fragmentation. 

For the EU to faithfully implement the remaining Basel III rules is not only a matter of meeting an international commitment, but is important so that the bloc’s banks are not stigmatised abroad. Nonetheless, it could see some adaptations to European bank business models. 

A Covid-19-related delay to rolling out Basel III has clearing houses worried about horrendous capital charges for their foreign clearing clients. They are urging banking regulators to provide a reprieve. 

Banks pooling their data to gain lower capital requirements for exposures in their trading books seems like a no brainer, but so far only Canada is doing it on an industry-wide basis. By Justin Pugsley 

Central bank digital currencies (CBDCs) preserve the core functions of money in the digital era, said the Bank for International Settlements (BIS) in a report on June 23, dismissing cryptocurrencies as “speculative” and stablecoins as an “appendage”.

At the annual Mansion House speech delivered on July 1, finance minister Rishi Sunak said the UK can now operate differently and better as it has greater freedom to pivot away from the EU and to deepen relationships with other nations.

The Basel Committee proposals on the prudential treatment of crypto-assets are controversial to some participants while others believe they pave the way towards mainstream adoption.

The Bank of England appears to be edging closer to launching a UK central bank digital currency (CBDC), but still has concerns over how it might impact the financial sector. 

Liquidity providers are being encouraged by the Bank of England and the Financial Conduct Authority (FCA) to switch from the London interbank offered rates (Libor) to the Secured Overnight Financing Rate (SOFR) for dollar interest rate swaps from July 26.