Industry Appeal to Basel Committee
On August 19, 2025, a group of leading financial associations delivered an open letter to the Basel Committee on Banking Supervision, urging a suspension of its 2022 cryptoasset risk standards. The letter, signed by organizations including the Global Financial Markets Association, the Institute of International Finance and the International Swaps and Derivatives Association, contends that the rapid growth and evolving structure of crypto markets render the proposed capital and disclosure requirements excessively conservative.
Concerns Over Capital Treatment
The industry coalition highlights that stringent capital charges and punitive market risk weightings could deter banks from meaningful engagement with digital assets, undermining broader financial integration and innovation. The proposed framework, originally intended to take effect in January 2026, would require banks to hold substantial buffers against crypto exposures that many argue far exceed observed market volatility and counterparty risk.
Call for Data-Driven Reassessment
Rather than immediate implementation, the letter requests that the Basel Committee pause the rollout, gather updated market data and stakeholder feedback, and convene targeted consultations to ensure global standards are fit for purpose. Signatories warn that inflexible rules risk fragmenting overseas markets, incentivizing offshore banking solutions, and leaving banks unable to offer competitive crypto services in an era of increasing digital asset adoption.
Outlook and Next Steps
The Basel Committee, which sets supervisory guidance adopted by member jurisdictions, has no formal enforcement power but wields significant influence over international banking regulation. It has not publicly responded to the appeal. Observers now anticipate a period of dialogue and potential recalibration of capital requirements before the scheduled January 2026 effective date.”
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