At its meeting held on July 2-3, 2024, the Basel Committee on Banking Supervision (BCBS) reviewed and approved a number of policy and regulatory initiatives, including the crypto-asset risk disclosure framework, banking bookkeeping Consultation on revisions to interest rate risk standards and third-party risk management principles.

Bank Crypto Asset Risk Disclosure Framework

The Basel Committee has reviewed relevant comments on banks’ crypto-asset risk disclosure framework and agreed to make targeted revisions to crypto-asset standards to be published in December 2022.

(Basel Committee on Banking Supervision: Banks should disclose digital asset positions to prevent financial risks)

The committee approved a final disclosure framework that includes a set of standardized public forms and templates covering banks’ crypto asset risk disclosures. These disclosures are intended to increase the availability of information and maintain market discipline. The framework will be published later in July and implemented on January 1, 2026.

In addition, the Committee also approved a series of revisions to the prudential standards for crypto-assets, which are designed to further promote a consistent understanding of the standards, especially regarding the standards for stablecoins to obtain priority "Group 1b" regulatory treatment.

The committee’s deliberations on banks’ cryptocurrency positions date back to 2019. In 2021, it proposed placing cryptocurrencies in its high-risk Group 2 assets. Cryptocurrencies will have a 1,250% risk weight, requiring banks to have capital equal to the value of their cryptocurrency positions. Group 2 holdings are limited to less than 1% of the value of their Group 1 holdings.

Discussing the impact of banks as stablecoin issuers

Committee members also discussed the impact of banks as potential issuers of tokenized deposits and stablecoins. Members noted that the financial stability risks of these products depended in part on their specific structures and governing laws and regulations. Based on current market developments, these risks are largely covered by the Basel Framework and the Committee will continue to monitor developments in this area and other crypto asset markets.

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