Basel Committee Re-evaluates Crypto Asset Rules Amid Stablecoin Surge and US GENIUS Act Adoption

The Basel Committee on Banking Supervision (BCBS) has commenced a comprehensive overhaul of its existing regulatory framework governing how banks account for crypto assets. This proactive review is necessitated by the rapid evolution of the digital currency landscape, particularly the explosive proliferation of stablecoins, demanding that global financial rules catch up with the shifting economic paradigm. The initial directives, formalized in 2022, were designed to provide a global baseline for managing crypto risk. Although these standards are scheduled for worldwide implementation in January 2026, supervisory bodies across the globe are already conceding that modifications are essential to address market realities that have changed significantly since the original drafting.

Prior requirements mandated an exceptionally cautious stance, imposing a punitive 1,250% risk weight on unsecured crypto assets. This high capital charge effectively rendered holding these assets on bank balance sheets financially impractical, compelling the majority of institutional actors to steer clear of the digital asset space entirely. Nevertheless, the subsequent introduction of robustly regulated stablecoins, including prominent examples like USDT and USDC, highlighted a regulatory mismatch. Treating these instruments identically to highly volatile assets sparked significant backlash from the industry. The United States, in particular, has been vocal in advocating for a standard revision, underscoring this push with the recent enactment of the GENIUS Act, which sets forth federal guidelines specifically for stablecoin issuers.

Representing 45 jurisdictions globally, the BCBS is currently assessing whether the previous rules remain fit for purpose given the current architecture of the crypto market. A key point of discussion involves potentially easing capital requirements for Group 1 stablecoins—those defined as tokenized traditional assets or stablecoins possessing reliable backing. Should this change occur, banks would likely be required to perform rigorous due diligence on the mechanisms used to maintain the stability of these assets, ensuring they meet stringent criteria for redemption and backing quality. Regulators are striving to achieve a delicate equilibrium, ensuring that the pursuit of financial resilience does not inadvertently suppress innovation. This urgency is amplified by certain member nations, notably the US, which are pressing for prompt regulatory adjustments to foster competitive advantage.

The worldwide trajectory is clearly moving toward legitimizing digital assets through the implementation of stringent yet flexible regulatory standards. Mirroring this global shift, Russia's Central Bank has announced its own framework, colloquially termed “cryptoBasel,” scheduled for introduction in 2026. These domestic measures are designed to boost market transparency and draw in institutional investors by imposing strict mandates concerning capital adequacy and risk oversight, including robust anti-money laundering protocols. The ultimate success of this regulatory evolution hinges on the capacity of supervisory bodies to align digital innovations with the established safety rails of traditional financial instruments, all while carefully avoiding an overly restrictive approach that could stifle progress.