Basel Committee Unveils New Crypto Disclosure Framework and Updates Standards for Banks
The Basel Committee on Banking Supervision has approved a series of significant measures aimed at enhancing the regulation and transparency of banks’ involvement with cryptoassets. In a virtual meeting held on July 2-3, the committee finalized a disclosure framework for banks’ cryptoasset exposures and agreed on targeted revisions to its cryptoasset prudential standard.
The new disclosure framework, set to be implemented by January 1, 2026, includes a standardized set of public tables and templates that banks must use to report their cryptoasset exposures. This move is designed to improve information availability and support market discipline in the rapidly evolving crypto sector.
Simultaneously, the committee approved targeted revisions to the cryptoasset prudential standard, with a particular focus on clarifying the criteria for stablecoins to receive preferential “Group 1b” regulatory treatment. These updates aim to promote a more consistent understanding of the standard across the banking industry.
The Basel Committee also addressed the potential risks associated with banks issuing tokenized deposits and stablecoins. While noting that the current Basel Framework broadly captures the financial stability risks of these products, the committee emphasized that the specific structures and jurisdictional regulations play a crucial role in determining the scale of these risks.
In addition to crypto-related measures, the committee approved adjustments to its standard on interest rate risk in the banking book (IRRBB). These changes include updates to interest rate shock calculations, particularly for periods when rates are close to zero. The revised IRRBB standard will also take effect on January 1, 2026.
Furthermore, the committee agreed to consult on new principles for managing third-party risk, reflecting the growing reliance of banks on external service providers. This consultation, expected to be published later this month, aims to establish a common baseline for banks and supervisors in addressing these evolving risks.
Lastly, the Basel Committee reviewed feedback on its proposed Pillar 3 disclosure framework for climate-related financial risks. While no final decisions were announced, the committee committed to continuing its work on this framework as part of its comprehensive approach to addressing climate-related financial risks in the banking sector.
These developments underscore the Basel Committee’s ongoing efforts to adapt global banking regulations to emerging technologies and risks, ensuring the stability and transparency of the financial system in an increasingly digital and interconnected world.
