A coalition of global finance trade associations has called on the Basel Committee on Banking Supervision (BCBS) to make changes to its "excessively conservative and overly punitive" upcoming Cryptoasset Exposures Standard.
In July, the BCBS published its final disclosure framework for prudential treatment of cryptoassets ahead of the standard (SCO60) going live in January 2026.
However, the plans have not gone down well with industry players, prompting a letter from the so-called Joint Trades, which includes the Global Financial Markets Association, the Securities Industry and Financial Markets Association, and the Association for Financial Markets in Europe.
The letter urges a "pause and recalibration" of SCO60 to allow for a consultation and redesign, arguing that, as it stands the standard offers an "excessively conservative and overly punitive capital treatment of cryptoassets that is misaligned with actual risks".
The Joint Trades urge 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 associations have published a report on the impact of DLT and tokenisation in capital markets, concluding that they are reshaping securities issuance, collateral management and fund operations.
Say the Joint Trades: "The stage for mass adoption of tokenization in capital markets is set, driven by clearer regulatory pathways, mature technology platforms and committed institutional participation. Now is the time for coordinated action to harness the benefits of DLT, modernize financial infrastructure and support sustained economic growth."