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Banking associations urge Basel Committee to move quickly to ensure regulated institutions can offer crypto products to promote greater access to safe financial services
Washington, D.C. – International standard setters should move swiftly to create an oversight framework for cryptoassets to ensure regulated banking institutions can play a meaningful role in the growing sector, the Financial Services Forum said Tuesday.
Responding to a proposal from the Basel Committee on Banking Supervision, the Forum and other financial services trade associations welcomed the focus on designing a global prudential framework for cryptoassets. The associations noted the importance of global standards to ensure regulated banks are able to meet the demands of consumers and businesses.
“There is a certain measure of urgency in ensuring that supervised banks can participate in these markets with necessary prudential regulatory certainty, while leveraging other existing safety and soundness guardrails, in the near to medium term,” the associations wrote.
The Financial Services Forum joined the Global Financial Markets Association, the Futures Industry Association, the Institute of International Finance, the International Swaps and Derivatives Association, and the Chamber of Digital Commerce in responding to the Basel Committee’s consultative document, “Prudential Treatment of Cryptoasset Exposures.”
The associations offered a number of suggestions to ensure that the benefits of crypto technology can be fully realized by businesses and households across the global economy. The associations suggested that the Basel Committee use the existing framework for banking assets when considering how to treat cryptoassets for capital, liquidity and other regulations. Using the existing framework would allow for technological neutrality and reflect underlying risk, the associations said.
Read the associations’ comment here.
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