Today in crypto, Kraken submitted a confidentail filing for a proposed initail public offering (IPO) in the United States, the chair of the Basel Committee on Banking Supervision told the FT they may need a “different approach” to the current 1,250% risk weighting for crypto exposures that applies to banks, and US Senator Tim Scott said he’s pushing a vote on the crypto market structure bill in December.
Kraken lays groundwork for US IPO
Cryptocurrency exchange Kraken has submitted a Form S-1 to the US Securities and Exchange Commission for a proposed IPO of its common stock, as digital asset companies continue to push toward public listings.
The potential offering is subject to SEC review following the 43-day US government shutdown, which ended last week.
Rumors about Kraken’s IPO ambitions have circulated for months, despite co-CEO Arjun Sethi saying just last week that the exchange was not rushing to go public.
Kraken’s filing comes less than 24 hours after it announced securing $800 million in new funding at a $20 billion valuation. The latest tranche included a $200 million investment from Citadel Securities.
US and UK revolt forces Basel to rethink brutal crypto capital rules for banks
Global bank regulators are preparing to revisit their most stringent crypto rules after the United States and the United Kingdom refused to implement them, a move that threatens to unravel the long-standing consensus of the Basel Committee.
In an interview with the Financial Times, Erik Thedéen, the governor of the Swedish central bank and chair of the Basel Committee on Banking Supervision (BCBS), said they may need a “different approach” to the current 1,250% risk weighting for crypto exposures.
According to global law firm White & Case, the application of the 1,250% risk weight means that credit institutions must hold their own funds of at least equal value to the amount of the respective crypto-asset exposure.
Under the existing framework, crypto assets issued on a permissionless blockchain, which includes stablecoins such as USDt (USDT) and USDC (USDC), receive the same 1,250% risk weighting used for the riskiest venture investments.
However, Thedéen acknowledged that the rapid growth of regulated stablecoins has changed the policy landscape. “What has happened has been fairly dramatic,” Thedéen told the Financial Times, adding that there is a strong increase in stablecoins and that the amount of assets in the system calls for a new approach.
Senator Tim Scott pushes for December vote on crypto market bill
Senate Banking Committee Chair Tim Scott said on Tuesday that he’s eyeing to mark up a crypto market structure bill next month to have it on President Donald Trump’s desk by early 2026.
“Next month, we believe we can mark up in both committees and get this to the floor of the Senate early next year so that President Trump will sign the legislation making America the crypto capital of the world,” Scott told Fox Business, accusing Democrats of stalling efforts to advance the bill.
The House passed the CLARITY Act in July, which outlines the Commodity Futures Trading Commission and the Securities and Exchange Commission’s power to regulate crypto, and the Senate has been working on its own version of the bill through its Banking Committee and Agriculture Committee with the aim of marrying up the two bills.
Meanwhile, Coinbase CEO Brian Armstrong said in a video posted to X that he was in Washington, DC, “pushing for market structure legislation,” and noted there had been “a lot of progress.”
“We’ve got a good chance, I think, of a markup for this bill in December, hopefully get it to the president’s desk shortly thereafter,” Armstrong said.
