The Reserve Bank has rolled out an overhaul of its capital framework designed to strengthen financial stability while keeping the system running smoothly. These modernized rules aim to make banks more resilient against economic shocks and ensure the broader financial infrastructure can handle stress without breaking down.

What's this mean for markets? Stricter capital requirements push financial institutions to operate more cautiously, which can ripple through lending, investment strategies, and ultimately market liquidity. It's the kind of behind-the-scenes infrastructure move that doesn't grab headlines but shapes how capital flows across asset classes.

For crypto traders and DeFi enthusiasts, regulatory moves like these matter because they signal how traditional finance is tightening its guardrails. When central banks emphasize resilience and efficiency, it often precedes broader scrutiny of alternative financial systems. Worth paying attention to.