The Basel Committee of Banking Supervision (BCBS) has reportedly begun a review process of its crypto rules now that the stablecoin sector has clocked a boom. Based in Switzerland, the BCBS is responsible for setting global banking standards. In 2024 it had released a framework defining the reporting of crypto exposure and disclosure reporting for banks. The agency is now reassessing these guidelines.
By next year, the BCBS is likely to update these crypto exposure rules for banks, Bloomberg reported on Friday, October 31 citing people familiar with the matter. The revision is expected to make these laws more favourable amid the growing stablecoin ecosystem internationally.
In the last few weeks, key members of the BCBS met and discussed possible changes to the rules that direct that stablecoins minted on public blockchains should be subject to the same capital charges as riskier assets.
As per reports, this aspect of the guidelines has roped-in criticism from members of the crypto community. Citing stablecoins are pegged to fiat currencies, the bank has received industry feedback that the risk factor linked to stablecoins is far lesser than that of assets like Bitcoin and Ether. The U.S., for instance, has legalised stablecoins by passing the GENIUS Act this year.
The U.S., the U.K., and the European Union (EU) are among countries that were yet to roll these guidelines out to full capacity. These regions were in the process of reviewing these rules before deploying them into effect.
In 2024 when the BCBS had approved the suggested crypto exposure guidelines for banks, it had set the implementation date of January 1, 2026. The rules direct banks to maintain public records of their crypto engagements.
The BCBS has 45 members including Germany, Italy, India, Australia, and China among others.