A coalition of leading financial trade associations has called on the Basel Committee on Banking Supervision (BCBS) to pause and revise its planned framework for banks’ cryptoasset exposures, known as SCO60, before it comes into effect in January 2026.
In a joint letter, the Global Financial Markets Association (GFMA), the Asia Securities Industry & Financial Markets Association (ASIFMA), the Securities Industry and Financial Markets Association (SIFMA), and the Association for Financial Markets in Europe (AFME) argue that the current prudential standard is excessively conservative and out of step with real risk levels. They highlight inconsistencies with existing market risk management practices, warning that the approach could stifle responsible innovation within regulated markets.
The groups urge the BCBS to launch a targeted consultation and redesign the framework before implementation. According to them, the present capital treatment of cryptoassets is “overly punitive” and based on outdated assumptions about the size and significance of the market.
New report on DLT potential
Alongside the letter, the coalition, together with the Boston Consulting Group, Ashurst, and Sullivan & Cromwell, has released a report titled The Impact of DLT in Capital Markets: Ready for Adoption, Time to Act. The study presents live cases of distributed ledger technology (DLT) use in securities issuance, collateral management, and fund operations. It points to efficiency gains, improved transparency, and stronger risk management as evidence that the technology is ready to scale.
Six priority areas
The report identifies six areas for ecosystem progress, including advancing tokenisation in high-potential asset classes and developing scalable settlement options with tokenised money and stable payment instruments. It stresses the importance of technology-neutral regulation and argues that legislation needs to keep pace with the industry’s adoption of DLT.
By linking the push for regulatory revision with the broader case for distributed ledger adoption, the Joint Trades are aiming to influence how global standards will shape banks’ handling of cryptoassets in the years ahead.
