A coalition of leading financial industry associations, including the Global Financial Markets Association (GFMA), Institute of International Finance (IIF), and others, have issued a united appeal to the Basel Committee on Banking Supervision requesting a postponement and reevaluation of the crypto asset standards scheduled to take effect in January 2026. These rules, established in 2022, aimed to manage risk—but industry bodies now argue they are outdated and overly conservative.

These associations assert that the crypto market has matured significantly since the rules were initially drafted. What was once a fringe sector is now deeply embedded in mainstream finance, accompanied by improved regulatory clarity and infrastructure. Thus, they contend, the 2026 standards risk stifling institutional participation and could drive banks—and their liquidity—away from digital asset integration.

The proposed rules include strict capital requirements and conservative risk weighting for crypto exposures. Critics, however, point to new legislation such as the U.S. GENIUS Act, which brings much-needed transparency and reserve backing standards to stablecoins, setting a precedent for far more nuanced regulation.

Financial authorities remain cautious. While the Basel Committee has no direct enforcement power, its recommendations serve as the benchmark for global banking regulation. By advocating a delay, financial leaders are seeking the space to better align supervisory frameworks with recent developments and evolving market conditions.