Eight major financial industry trade groups urged the Basel Committee on Banking Supervision to postpone the implementation of new crypto standards set for January 2026. They argue that the proposed capital requirements, which could reach up to 1,250%, are excessively punitive compared to traditional investments. The groups' concerns highlight the evolving nature of crypto risk management, which has become more aligned with traditional finance. They contend that these rules could marginalize banks in the burgeoning digital asset market, potentially pushing activities outside regulated financial institutions. The trade associations stress that different regulatory approaches have emerged since the original framework was laid out in 2022, warning of a fragmented market structure that could jeopardize efforts to establish a minimum standard. The capital rules currently impose heavier burdens on crypto assets, particularly Bitcoin and Ethereum, compared to traditional securities. The letter emphasizes the need for a review and revision of these capital rules to promote safety and client protections in the banking system.

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