Banking Industry Challenges Basel Crypto Rules Set for 2026 Implementation

Finance industry groups are pushing back against the Basel Committee's 2022 crypto standards, arguing they are overly conservative for today's market conditions. The rules, slated for January 2026 implementation, would RENDER bank participation in crypto markets economically unviable according to trade associations representing major financial institutions.

An open letter signed by the Global Financial Markets Association, Institute of International Finance, and crypto industry groups contends the regulatory landscape has evolved significantly since the post-FTX era when the standards were drafted. The coalition seeks a temporary pause to reassess capital requirements they view as punitive to institutional adoption.

The challenge comes as traditional finance seeks to capitalize on shifting regulatory attitudes, particularly under the TRUMP administration's pro-crypto stance. Banks argue current proposals would stifle their ability to engage meaningfully with digital assets despite growing client demand and maturing market infrastructure.