Rating Agencies Grapple With Digital Assets as Regulators Circle
Credit rating agencies are quietly building frameworks to assess crypto-related risks, though traditional credit scores remain insulated for now. The emergence of digital assets has forced Fitch, Moody’s, and S&P Global to evaluate novel threats—from exchange vulnerabilities to Leveraged retail speculation—that could destabilize financial institutions.
Regulators are moving faster. SEBI in India and the EU’s MiCAR are drafting rules to impose order on the sector. While crypto holdings don’t directly impact credit scores, reckless trading with borrowed funds can dent personal creditworthiness through debt accumulation.
The tension lies in balancing innovation with stability. As banks and fintechs wade deeper into digital assets, rating firms must quantify operational risks like fraud and cyberattacks—factors absent from traditional credit models.
