New analysis from the Federal Reserve suggests categorizing crypto as a distinct asset class for initial margin requirements in derivatives markets due to its volatility. The proposal by three authors includes risk weightings for cryptocurrencies like BTC, BNB, and stablecoins. This reflects the maturation of crypto as an asset class and regulatory preparations in the US.

The Federal Reserve has cleared the way for banks to engage with crypto by reversing previous guidance limiting US banks’ involvement with cryptocurrencies. The Fed also proposed the concept of granting crypto companies access to “skinny” master accounts with direct central banking system access. This move signals a shift in approach towards crypto regulation.

Read more at CoinTelegraph: Federal Reserve Paper Proposes New Risk Weighting Model for Crypto