A group of trade associations has co-signed a letter sent to the Basel Committee on Banking Supervision (BCBS) urging for a “pause and recalibration” of the Cryptoasset Exposures Standard (SCO60).
The Cryptoasset Exposures Standard aims to standardise reporting on digital asset activities and is set to go live in January 2026, however the eight trade entities are advising a delay in order to allow for a targeted consultation and redesign.
The trade associations – known as The Joint Trades – include: Global Financial Markets Association (GFMA) and its members (AFME, ASIFMA, SIFMA); Bank Policy Institute (BPI); Futures Industry Association (FIA); Financial Services Forum (FSF); Global Blockchain Business Council (GBBC) Global Digital Finance (GDF); Institute of International Finance (IIF); International Swaps and Derivatives Association (ISDA).
The motivations behind the urging to pause is focused on “the excessively conservative and overly punitive capital treatment of cryptoassets that is misaligned with actual risks,” according to the letter.
Furthermore, the letter to the committee points to the existence of inconsistencies with current market risk management practices.
The Joint Trades is specifically urging the BCBS to make revisions to the cryptoasset standard “to better reflect actual risk profiles and to support responsible innovation within the regulatory perimeter”.
In addition to the letter, The Joint Trades have published a new report focused on the potential of Distributed Ledger Technology (DLT) in capital markets – ‘The Impact of DLT in Capital Markets: Ready for Adoption, Time to Act’.
Specifically, The Joint Trades claim that DLT is ready to scale as institutional adoption is accelerating, with t-neutral regulation is essential.
The recommendations going forward have been split into several priority areas, including: accelerating market development in high-potential asset classes; establishing interoperability to prevent market fragmentation, addressing technical and operational integration gaps, and fostering public-private coordination.
Overall, the findings highlight “how the overall size and significance of the cryptoasset market have increased, rendering many of the premises underlying the Basel standard outdated and requiring important adjustments”.