A coalition of leading financial industry organisations has urged global regulators to reconsider strict cryptocurrency rules set to take effect in January 2026.
The Basel Committee on Banking Supervision introduced the framework in 2022, requiring banks to hold significant capital against crypto exposures. The aim was to safeguard against risks such as market volatility, liquidity shocks, and systemic instability. However, critics now argue the rules no longer reflect the realities of today’s digital asset markets.
Industry associations representing banks and financial institutions worldwide have appealed for a delay and revision of the standards. They argue that the rapid adoption of digital assets, tokenised securities, and stablecoins has significantly changed the landscape. Banks are increasingly using blockchain technology for payments, asset trading, and treasury operations — areas that need flexible oversight rather than rigid restrictions.
Analysts warn that if the rules are implemented unchanged, banks may be discouraged from participating in crypto markets, slowing down innovation in the financial sector. Some also caution that overly conservative measures could push activity into unregulated spaces, creating higher risks.
Meanwhile, the U.S. and several other economies have taken steps to integrate digital assets into mainstream finance. New policy directions suggest a shift towards supporting blockchain innovation while applying targeted safeguards.
With the January 2026 deadline approaching, the Basel Committee faces mounting pressure to modernise its crypto framework. The decision will play a crucial role in shaping how global banks balance innovation with financial stability in the digital era.
