The European Union (EU) reached a political agreement on changes to the Capital Requirements Regulation and Directive, including new rules for cryptoassets. The move came in response to lawmakers’ calls for strict rules to prevent “unsecured cryptocurrencies” from entering the traditional financial system.

The announcement of the agreement was made public in a tweet from the European Parliament’s Economic and Monetary Affairs Committee. The tweet followed a meeting attended by representatives from the European Parliament, national governments and the European Commission, the body that originally proposed the rules back in 2021.

The Council statement also confirmed that the agreement includes a “transitional prudential regime for crypto-assets,” without providing additional details.

The preliminary details suggested a tough stance, with a maximum possible risk weight of 1,250% for free-floating cryptocurrencies. This would have meant that banks would have to allocate one euro of capital for every euro of bitcoin (BTC) or ether (ETH) they own, effectively discouraging them from investing in this market.

However, during negotiations, the European Commission proposed a softer stance on regulated stablcoins. This proposal seems to have found support among EU governments.