Banking Heavyweights Oppose Basel’s Proposed Rules on Crypto Capital Requirements
Banks including JPMorgan Chase and Deutsche Bank oppose “overly conservative” proposals they say would prevent banks from getting involved in crypto asset markets.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/ANZOLY7LG5HXZE6P2ZZM3LXCN4.jpg)
Bank for International Settlements. Basel, Switzerland.
/arc-photo-coindesk/arc2-prod/public/LXF2COBSKBCNHNRE3WTK2BZ7GE.png)
A forum of some of the largest U.S. and European banks has urged modifications to the rules proposed by the world’s central banks and regulators for capital requirements on bitcoin exposure.
- The Global Financial Markets Association (GFMA), made up of such institutions as JPMorgan Chase and Deutsche Bank as well as several other industry associations, in a Sept. 20 letter opposed the rules set out in June by the Basel Committee on Banking Supervision, The Wall Street Journal reported Tuesday.
- The Basel Committee, which is a group within the Bank for International Settlements made up of global regulators and central bankers, suggested that banks with bitcoin exposure should set aside capital to cover losses in full.
- The GFMA said that such a weighting was unnecessary.
- “We find the proposals in the consultation to be so overly conservative and simplistic that they, in effect, would preclude bank involvement in crypto asset markets,” the GFMA wrote in the letter to the Committee.
Disclosure
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.
Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.