Several major finance industry groups have urged the Basel Committee on Banking Supervision to revise upcoming regulatory standards that they argue would restrict banks from participating in crypto markets. The committee, which includes regulators and central banks from leading financial centers, agreed in 2022 on rules governing how banks should manage and disclose risks related to crypto assets.
In an open letter, organizations including the Global Financial Markets Association, the Institute of International Finance, and the International Swaps and Derivatives Association stated that the rules are now outdated due to significant changes in the crypto market since 2022. They warned that the current approach, set to take effect in January 2026, would discourage banks from engaging in crypto by making participation financially unviable.
The letter noted, “The Cryptoasset Standard’s restrictive qualification standards, combined with otherwise punitive market and credit risk capital treatments, effectively make it uneconomical for banks to meaningfully participate in the cryptoasset market.” The groups called on the Basel Committee to pause implementation, gather new information, and adjust the rules.
The debate comes amid rapid crypto growth and increasing ties to traditional financial markets, supported in part by a pro-crypto policy stance from U.S. regulators under President Donald Trump. The Basel Committee cannot directly enforce its rules, but member countries are expected to adopt them.
