Wall Street Pushes Back on Basel’s Crypto Rules, Urges Rethink

Eight major trade groups, including the Global Financial Markets Association and the Institute of International Finance, have urged the Basel Committee to pause crypto capital rules set for January 2026, warning they would make bank participation in the $2.8 trillion digital asset market uneconomical.

The groups argue the framework—imposing up to 1,250% risk weights on many crypto assets and capping bank exposure at 1% of Tier 1 capital—reflects outdated post-FTX risk fears rather than today’s more regulated environment. Critics say the rules risk pushing crypto activity outside the banking system, creating a fragmented market and undermining financial stability, while supporters call for revisions to align requirements with traditional finance standards.

Clever Robot News Desk 21^th August 2025