Global Finance Groups Urge Basel Committee to Rethink Crypto Banking Rules

A coalition of major financial industry groups, including the Global Financial Markets Association and other banking lobby organizations, has urged the Basel Committee on Banking Supervision to delay the implementation of new cryptoasset exposure standards scheduled for January 2026. They argue that the standards, agreed upon in 2022, are excessively conservative and impose punitive capital requirements that could stifle banking innovation and make participation in crypto markets uneconomical for banks. The groups highlight that the crypto market has evolved significantly since the standards were set, with increased integration into mainstream finance and a regulatory environment in the U.S. becoming more favorable under President Donald Trump's pro-crypto approach. The letter calls for a pause to reassess the framework, seek updated information on distributed ledger technology use cases, and consider recalibrating the rules to better reflect current market realities. Although the Basel Committee lacks enforcement powers, its standards are widely adopted by member jurisdictions, making this push significant for global banking practices. The industry coalition also released a report on the impact of distributed ledger technology on capital markets to support their call for revised regulations.