A powerful coalition of finance industry groups is urging global regulators to ease up on incoming rules that could block banks from competing in the booming crypto market.
At the center of the debate is the Basel Committee on Banking Supervision, which in 2022 set strict standards for how banks should manage risks tied to digital assets. These rules—scheduled to take effect in January 2026—were crafted in the shadow of major crypto company collapses, which left investors burned and regulators wary.
But in an open letter, organizations including the Global Financial Markets Association, the Institute of International Finance, and the International Swaps and Derivatives Association argue that the crypto market has evolved dramatically since then. With Bitcoin and other tokens climbing to record highs and digital assets becoming more entwined with traditional finance, they warn that overly conservative standards could shut banks out of a sector where demand is surging.
“The Cryptoasset Standard’s restrictive qualification standards, combined with punitive capital requirements, effectively make it uneconomical for banks to meaningfully participate,” the groups wrote. They called on the Basel Committee to pause implementation, gather fresh data, and rethink its framework.
The push comes as U.S. regulators, under President Donald Trump, have adopted a more crypto-friendly stance, making it easier for banks to engage with digital assets. Industry groups fear that unless global standards reflect this shift, banks will be forced to sit on the sidelines while other players capture market share.
The Basel Committee, housed at the Bank for International Settlements, can’t enforce its rules directly but relies on member nations to apply them. For now, the crypto debate pits caution against innovation—an open question of whether banks will be locked out or welcomed in.
