Bank of England's Deputy Governor Woods just dropped an interesting take on capital requirements. His point? Pushing for lower capital thresholds than what's currently in place might backfire – could actually throttle growth instead of boosting it.

This matters because capital regulations directly impact how banks allocate resources, which flows into everything from traditional markets to crypto liquidity. Tighter rules mean safer systems but potentially slower expansion. Looser ones? More risk, but theoretically more fuel for growth.

Woods seems to be pushing back against the idea that cutting requirements is a silver bullet. Worth watching how this plays out, especially as regulatory debates heat up across both TradFi and digital asset spaces.