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Six U.S. Republican senators have written to the Federal Reserve, FDIC, and OCC urging regulators to rewrite capital rules for banks holding digital assets. The senators say that the 1,250% risk weight set by Basel for cryptocurrencies like Bitcoin could effectively serve as a de facto restriction; under an 8% minimum capital requirement, a bank holding a $100 million Bitcoin exposure would need to allocate at least $100 million in capital. The article states that although U.S. regulators have relaxed some access related to crypto custody, stablecoins, and DLT payments, the capital treatment for banks directly holding Bitcoin remains unresolved. (CryptoSlate)