Basel Committee reviews bank crypto-asset rules amid stablecoin surge: Report

Global banks may soon take a more favorable view of cryptocurrencies as the Basel Committee on Banking Supervision (BCBS) prepares to revise its landmark guidance on crypto exposure, according to a Bloomberg report published Friday.

Citing sources familiar with the matter, Bloomberg revealed that the Basel Committee’s 2022 guidance on banks’ treatment of crypto will be updated next year to reflect a more accommodating stance. This comes after the initial 2022 standards led many banks to avoid crypto altogether, interpreting the rules as a cautionary signal.

The Basel Committee has recently held talks assessing the appropriateness of its previous rules, which have yet to be fully implemented by major jurisdictions including the United States, United Kingdom, and the European Union.

### The Need for Updated Rules

The surge in stablecoins’ popularity drives the need for new regulations. Stablecoins were recently regulated in the US through the GENIUS Act and are now permitted for payment uses.

Under current Basel rules, stablecoins issued on public blockchains face the same capital charges as higher-risk assets like Bitcoin (BTC) and Ether (ETH). This equivalence has drawn criticism from market participants who argue that regulated, asset-backed stablecoins carry significantly lower risks.

### A Powerful Standard-Setting Body

The Basel Committee is a global organization responsible for setting international standards on bank regulation, focusing on capital adequacy, risk management, and supervision. Its frameworks, such as Basel III, aim to ensure banks worldwide remain stable and resilient — thereby reducing the risk of global financial crises.

### Industry Perspectives

Chris Perkins, president of investment company CoinFund, commented in mid-August that the capital requirements imposed by the Basel Committee create a “chokepoint” restricting the growth of the crypto industry. Perkins stated:

> “It’s a very nuanced way of suppressing activity by making it so expensive for the bank to do activities that they’re just like, ‘I can’t.’”

### Varied Approaches Across Countries

According to the Bloomberg report, some countries, including the US, are proactive in reviewing the standards before implementation to remain ahead of regulatory developments. Others prefer to adopt the current standards first and consider revisions at a later stage.

Notably, the European Union’s Markets in Crypto-Assets (MiCA) Regulation already allows stablecoins to receive capital treatment aligned with their backing, typically in cash and cash equivalents.

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As the Basel Committee moves forward with updating its crypto exposure rules, the banking and crypto sectors alike will be watching closely for changes that may impact how digital assets are integrated into the traditional financial system.
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