The Federal Reserve has announced a reversal on its plans to increase capital requirements for banks, a decision influenced by significant lobbying from big bank executives. This move marks a notable shift in regulatory stance, particularly concerning the Basel Endgame capital rules, and has various implications for crypto. The Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) are also aligned with this decision. Meanwhile, in the UK, regulators have delayed the implementation of a tougher capital regime for banks, with the Bank of England making substantial amendments to its proposals in response to feedback. The revised rules are expected to increase Tier 1 capital requirements by less than 1%, down from the previous estimate of 3.2%. This relaxation is seen as a boost for smaller challenger banks, enhancing their ability to compete with larger institutions and supporting growth and competitiveness.