Wall Street trade groups call for a reassessment of Basel's crypto standards

Eight major financial trade groups have sent a letter to the #Basel Banking Supervisory Committee, urging a pause on the implementation of cryptocurrency standards set to take effect in January 2026. They argue that the current regulations are overly stringent and could deter banks from participating in the digital asset market.

Concerns about regulation

These groups point out that the current standards, established in 2022, require capital levels of up to 1,250% for certain crypto assets, significantly higher than for traditional assets. They contend that these rules reflect an outdated risk perception from the #FTX crisis era, rather than the current environment where risks are more tightly managed.

According to these groups, overly strict regulations will make cryptocurrency-related activities "economically unfeasible" for banks. This could push the crypto market outside the regulated financial system, posing risks to safety, customer protection, and financial stability.

Calls for change

The trade groups emphasize that with the increasing involvement of institutions, risk management in crypto is now "more integrated with traditional finance." They urge the Basel Committee to review and amend the capital rules to accurately reflect the realities of the market. #anhbacong