March 28, 2024

Comments on Basel Cryptoasset Standard Amendments

ICBA supports the work of the Basel Committee to develop a quality framework for the classification of cryptoasset exposures, as well as its focused effort to examine stablecoin exposures for banks.

ICBA believes that the Basel Committee’s proposal represents an accurate assessment of key risk factors associated with stablecoins. However, we think the consultative document also validates our misgivings about cryptocurrencies—the novel aspects of cryptoassets, including stablecoin instruments, do not provide any advantages over the existing banking system in the United States.

By creating a new type of asset in Group 1b, we are concerned that the revised standard may even encourage the cryptocurrency advocates to re-double their efforts to build a shadow economy, thereby undermining Basel’s wider objective of ensuring global financial stability.