Lummis, Sullivan Lead Colleagues in Urging Bank Regulators to Establish Fair Capital Standards for Digital Assets

June 4, 2026

Washington D.C. - Senate Banking Subcommittee on Digital Assets Chair Cynthia Lummis (R-WY) and Senator Dan Sullivan (R-AK) led their colleagues Senators Bill Hagerty (R-TN), Bernie Moreno (R-OH), Ted Budd (R-NC), and Jon Husted (R-OH) in sending a letter to Federal Reserve Vice Chair for Supervision Miki Bowman, FDIC Chairman Travis Hill, and Comptroller of the Currency Jonathan Gould urging the agencies to build on recent progress clarifying the capital treatment of tokenized securities and move toward a clear and fair capital standard for banks engaged in digital asset activities.

"The Basel Committee on Bank Supervision published prudential capital standards for the on-balance sheet treatment of digital assets like bitcoin in 2022 and assigned a 1,250% risk weight- the most punitive classification in the capital framework," the senators wrote. "This classification was not derived from a calibrated assessment of the actual risk profile of digital assets, however. This framework appears to be a blanket penalty assigned by asset category as a de facto ban on banks holding this asset class, in direct tension with a technology-neutral approach. The practical consequences of this framework are stark."

Read the letter here.