Global Financial Associations Urge Revisions to BCBS Crypto Standards
Financial trade groups urge the Basel Committee to revise overly conservative crypto standards before 2026. Changes could impact global banking.
Several prominent global financial trade associations are urging the Basel Committee on Banking Supervision (BCBS) to reconsider its Crypto Asset Exposure Standard (SCO60) ahead of its scheduled implementation in January 2026. In a letter dated Tuesday, August 19, these associations voiced concerns that the standard's capital treatment of crypto assets is excessively conservative and may negatively impact the financial sector.
The BCBS, known for its role in setting international banking standards, introduced the SCO60 to regulate the exposure of banks to cryptocurrency assets. However, the associations argue that the current framework could stifle innovation and limit the ability of financial institutions to adapt to the rapidly evolving digital asset landscape.
The criticisms center around the stringent capital requirements imposed on banks holding crypto assets. The trade associations claim these requirements are disproportionate to the actual risks posed by these assets, potentially creating an undue burden on banks and limiting their competitive edge in the global marketplace.
The call for revisions comes amid growing interest in cryptocurrencies and a broader acceptance of digital assets in the financial industry. As more banks look to integrate crypto assets into their portfolios, the existing standards could deter them from fully participating in this burgeoning market.
The associations are advocating for a more balanced approach that aligns with the real-world dynamics of crypto assets. They emphasize the need for standards that support both financial stability and innovation, ensuring banks can safely and effectively engage with digital currencies.
As the January 2026 deadline approaches, the BCBS is under increasing pressure to address these concerns. The outcome of this debate could have significant implications for the future of banking and the role of cryptocurrencies in the global financial system.