The US is reportedly pushing global regulators to amend bank crypto standards to address the regulatory shift of the past few years and the industry’s developments, including the recent push for stablecoin adoption.
In 2022, the Basel Committee on Banking Supervision (BCBS) released its standard for the “prudential treatment of banks’ exposures to cryptoassets,” including tokenized traditional assets, stablecoins, and unbacked digital assets.
According to people familiar with the talks, the shift has prompted debates at the BCBS regarding the suitability of these rules under the current environment, as major global jurisdictions, including the US and UK, haven’t committed to implementing them on time. The news media outlet noted that the Basel Committee updated its crypto standards in 2024 but delayed its implementation by one year.
As a result, the US has been seemingly leading calls to amend the standards, Bloomberg sources said, arguing that the rules are “incompatible with the industry’s evolution,” especially in the stablecoin sector.
Additionally, the US banking industry has pushed back against the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act for potential loopholes that could pose major risks to the financial system.
Meanwhile, the Financial Stability Board (FSB), an international body that monitors and makes recommendations about the global financial system, recently vowed to address the evolving threats from private finance and the growing use of stablecoins.
In June, the Financial Action Task Force (FATF) expressed concerns about the increasing risks associated with the stablecoin adoption, arguing that the use of the digital assets by criminal parties poses a growing challenge to global financial security.
Bailey affirmed that the international watchdog will have “open and frank discussions among members” about the next steps, and will “increase outreach to the private sector to benefit from their expertise and perspectives on risks and vulnerabilities.”
