Wall Street Groups Request Delay on 2026 Crypto Banking Regulations
A coalition of Wall Street trade groups is urging global regulators to postpone strict crypto banking rules set for January 2026. In a letter to the Basel Committee on Banking Supervision, eight associations warned that these regulations could make it prohibitively expensive for banks to engage with crypto assets, risking exclusion of the $2.8 trillion market from the formal financial system.
Trade Groups' Concerns
- The Global Financial Markets Association and the Institute of International Finance are among the signatories.
- The Basel rules, while non-binding, influence member countries' risk management practices.
- Current framework assigns Bitcoin and Ethereum a 100% risk weight, while other crypto assets face up to a 1,250% penalty.
- Banks are restricted to holding no more than 1% of Tier 1 capital in certain crypto assets.
Outdated Views
- The associations argue that the rules reflect outdated perceptions influenced by past crypto collapses.
- They caution that inconsistent implementation may undermine the establishment of a minimum standard.
SEC's Token Classification Shift
SEC Chair Paul Atkins indicated at the Wyoming Blockchain Symposium that only a small number of tokens should be classified as securities, contrasting with former Chair Gary Gensler’s broader classification approach.
Project Crypto Initiative
- Atkins introduced the SEC's "Project Crypto," aiming for clearer regulations for digital assets.
- Congress is advancing the Digital Asset Market Clarity (CLARITY) Act towards a market structure bill.
- Bipartisan support exists, with potential backing from up to 18 Democrats.