Will Crypto Capital Find A Home In The U.S.?

Two recent scholarly articles, recent administrative law decisions, and the Report of the President's Working Group on Digital Assets ("PWG Report") may provide important clues for the potential future for the regulation of bank capital in the United States related to digital assets. Viewed as a whole, they may show a relationship between the Administration's agenda and principles closely aligned with the Administrative Procedure Act ("APA"), both of which are likely to have an impact on the development of capital standards for crypto in the United States.

In an article recently published in the Virginia Journal of International Law, entitled "Sovereignty and Legitimacy in International Banking Law" (hereinafter "Sovereignty and Legitimacy"), authors David Murphy and Kristina Parajon Skinner focus on standards governing the Basel Committee on Banking Supervision ("BCBS" or "the Basel Committee") regarding capital levels for large banking institutions. The article