August 19, 2025 Geneva/New York
Leading financial trade associations have jointly urged global regulators to reconsider stringent new standards governing banks’ cryptocurrency activities, citing outdated assumptions and a rapidly evolving digital asset landscape. In a formal letter addressed to the Basel Committee on Banking Supervision, the groups called for a pause in the rollout of rules set to take effect in 2026, and proposed a comprehensive review and recalibration of the framework.
The current standards, agreed upon in 2022, include steep capital surcharges for banks holding cryptocurrencies. These measures were introduced in response to market volatility and high-profile collapses that raised concerns about systemic risk. However, industry leaders argue that the crypto ecosystem has since matured, with increased institutional adoption and regulatory clarity—particularly in the United States, where recent legislation has bolstered digital asset integration into mainstream finance.
The signatories of the letter include the International Institute of Finance, the International Swaps and Derivatives Association, the Global Blockchain Business Council, and regional banking associations from the US, Europe, and Asia. They emphasized the need for updated data on distributed ledger technology use cases and warned that inconsistent implementation across jurisdictions could undermine the goal of a unified global standard.
“Inconsistent implementation will jeopardize the goal of establishing a minimum standard that enables a level playing field, mitigates cross-border risk spillovers, and prevents market fragmentation,” the associations wrote.
Major banks such as JPMorgan Chase & Co. have already expanded their crypto operations, including custody services, trading facilitation, and stablecoin issuance. The industry’s growing involvement in digital assets has prompted calls for a regulatory framework that balances innovation with risk management, rather than imposing blanket restrictions.
The Basel Committee has not yet responded publicly to the letter. However, sources familiar with the regulatory process acknowledge that the proposed rules may face resistance, especially given the shifting market dynamics and geopolitical influence on financial policy.
As the 2026 deadline approaches, the debate over crypto regulation for banks is expected to intensify, with stakeholders pushing for a more adaptive and collaborative approach to global financial oversight.
