Banking trade groups call for recalibration of tough new crypto rules for banks

[Looking directly up at the skyline of the financial district in central London]
CHUNYIP WONG

Major banking lobby groups urged regulators to delay the rollout of new global crypto standards for lenders, arguing the rules set three years ago are out of step with the current market landscape.

The trade associations, including the International Institute of Finance, The International Swaps & Derivatives Association, among others, urged regulators to reassess the planned 2026 rules, calling for fresh scrutiny of distributed ledger applications and adjustments to the framework where warranted, according to a joint letter to the Basel Committee on Banking Supervision.

The Basel framework, finalized in 2022 amid market turmoil, imposed heavy capital charges on banks' crypto holdings to curb contagion risk.

But, with digital assets now entrenched in U.S. policy under President Donald Trump -- prompting global banks to expand into [https://seekingalpha.com/news/4455468-jpmorgan-said-to-accept-crypto-etfs-as-loan-collateral-for-trading-wealth-clients] custody, trading and stablecoin services, the environment has shifted positively.

Just last week, the Federal Reserve said it's shutting down [https://seekingalpha.com/news/4486209-federal-reserve-to-end-biden-era-oversight-program-for-banks-crypto-activities] its Biden-era initiative for monitoring banks' crypto activity.

"Banks should be allowed to compete on fair footing with other financial services providers, and the adoption and innovation of new cryptoasset products and offerings allows them to do so," the letter said [https://www.gfma.org/wp-content/uploads/2025/08/bcbs-prudential-letter-final-public-version.pdf].

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