A coalition of prominent global finance trade associations has urged the Basel Committee on Banking Supervision (BCBS) to reconsider its forthcoming Cryptoasset Exposures Standard, which they describe as “excessively conservative and overly punitive.”
In July, the BCBS unveiled its final disclosure framework for the prudential treatment of cryptoassets, with the new standard (SCO60) set to take effect in January 2026. However, this initiative has attracted criticism from industry stakeholders, leading to a formal letter from the Joint Trades—a coalition that includes the Global Financial Markets Association, the Securities Industry and Financial Markets Association, and the Association for Financial Markets in Europe.
The letter calls for a “pause and recalibration” of SCO60 to facilitate a more comprehensive consultation and redesign process. The Joint Trades argue that the current framework imposes excessively stringent capital requirements on cryptoassets, which do not accurately reflect the associated risks.
They advocate for revisions to the cryptoasset standard that would better align with actual risk profiles and encourage responsible innovation within the regulatory framework. Additionally, the associations have released a report highlighting the transformative effects of distributed ledger technology (DLT) and tokenization in capital markets, noting their potential to revolutionize securities issuance, collateral management, and fund operations.
The Joint Trades assert, “The groundwork for the widespread adoption of tokenization in capital markets is established, supported by clearer regulatory guidance, advanced technology, and active institutional engagement. Now is the crucial moment for coordinated efforts to leverage the advantages of DLT, enhance financial infrastructure, and foster sustained economic growth.”