After lawmakers demanded ” prohibitive“, the European Union (EU), on Tuesday, secured a deal regarding new bank capital legislation. This included cryptoassets.

After a meeting between representatives of the European Parliament and national governments, as well as the European Commission that had proposed the new rules in 2021, the deal was announced via Twitter.

To become law, the political agreement, which introduces controversial and sweeping changes in how banks assess risk for corporate and home loan, must be approved by the EU Council and legislators. This process can take several months.

In a press release, Swedish Finance Minister Elisabeth Svantesson who presided over the discussions on behalf of EU members states said that the new rules “boost strength and resilience” of banks in the Union.

The Council’s statement confirmed that the agreement includes a “transitional prudential regime for crypto assets” without giving any further details.

The Basel Committee on Banking Supervision is currently finalizing a global crypto-banking rulebook. Details already released suggest that they will take a strict line and assign the maximum risk weight possible of 1,250% to free-floating cryptocurrency.

This would require banks to provide a euro in capital for every euro they own of bitcoin (BTC), ether (ETH), or other cryptocurrencies. It would be a significant deterrent to them investing into the market. EU Parliamentarians are eager to see these measures come into effect as soon as possible.

A compromise, privately proposed late in the discussions by the European Commission, would soften the strict stance for stablecoins. This appears to be favored by EU government. They must agree before the bill is made law.

Update (June 27, 06.53 UTC): Lead paragraph updated to confirm that crypto is included. Fourth paragraph now includes a statement by Svantesson.

Parikshit Miishra is the editor.