Overview
- The Basel Committee is discussing adjustments to its prudential framework for banks’ crypto exposures following a surge in stablecoin adoption.
- The United States is reportedly leading calls to amend the standards, arguing parts are incompatible with today’s market structure, according to Bloomberg.
- Under the 2022–2024 Basel design, unbacked crypto carries a 1,250% risk weight while qualifying stablecoins and tokenized assets receive standard treatments.
- Implementation paths are diverging, with the Bank of England engaging on international consistency, Singapore’s MAS delaying by one year, and the ECB favoring implementation now with a later review.
- Banks and industry groups say the current calibration makes services uneconomic and shifts activity to non‑bank venues, while watchdogs such as the FSB and FATF warn about rising cross‑border risks.