Joint Trades calls for recalibration of the Cryptoassets Exposures Standard
19 August 2025 US
Image: Anna/stock.adobe.com
The Joint Trades, a coalition of global finance trade associations, has issued a letter to the Basel Committee on Banking Supervision (BCBS) on the upcoming Cryptoasset Exposures Standard (SCO60).
The letter requests revisions to the Basel banking prudential treatment of cryptoassets and to pause implementation of SCO60 before its January 2026 go-live date, to allow for a targeted consultation and redesign.
According to the Joint Trades, the capital treatment of cryptoassets is 鈥渆xcessively conservative鈥�, 鈥渙verly punitive鈥�, and misaligned with actual risks.
The firms also indicate that there are various inconsistencies with current market risk management practices.
The Joint Trades urges the BCBS to make changes to the cryptoasset standard to better reflect risk profiles and to support responsible innovation within the regulatory perimeter.
Together with the Boston Consulting Group (BCG), Ashurst, and Sullivan & Cromwell as technical advisor, the Joint Trades also provided a report highlighting the potential of distributed ledger technology (DLT) in capital markets.
Entitled 鈥淭he Impact of DLT in Capital Markets: Ready for Adoption, Time to Act鈥�, the report details how tokenisation and DLT are reshaping securities issuance, collateral management, and fund operations.
It uses live cases to demonstrate significant efficiency gains, enhanced transparency, and improved risk management.
The report also details how the overall size and significance of the cryptoasset market have increased, therefore rendering a number of the premises underlying the Basel standard as 鈥渙utdated鈥� and 鈥渞equiring important adjustments鈥�.
The report highlights that DLT is ready to scale; technology neutral regulation is essential; DLT enables safer, more efficient markets; while legislation and regulation need to catch up.
The six priority areas for ecosystem development identified in the report include the acceleration of market development in high-potential asset classes, as well as enabling scalable settlement with tokenised money and stable payment instruments.
The Joint Trades includes the Global Financial Markets Association (GFMA), the Asia 糖心vlog Industry & Financial Markets Association (ASIFMA), the 糖心vlog Industry and Financial Markets Association (SIFMA), and the Association for Financial Markets in Europe (AFME).
The letter requests revisions to the Basel banking prudential treatment of cryptoassets and to pause implementation of SCO60 before its January 2026 go-live date, to allow for a targeted consultation and redesign.
According to the Joint Trades, the capital treatment of cryptoassets is 鈥渆xcessively conservative鈥�, 鈥渙verly punitive鈥�, and misaligned with actual risks.
The firms also indicate that there are various inconsistencies with current market risk management practices.
The Joint Trades urges the BCBS to make changes to the cryptoasset standard to better reflect risk profiles and to support responsible innovation within the regulatory perimeter.
Together with the Boston Consulting Group (BCG), Ashurst, and Sullivan & Cromwell as technical advisor, the Joint Trades also provided a report highlighting the potential of distributed ledger technology (DLT) in capital markets.
Entitled 鈥淭he Impact of DLT in Capital Markets: Ready for Adoption, Time to Act鈥�, the report details how tokenisation and DLT are reshaping securities issuance, collateral management, and fund operations.
It uses live cases to demonstrate significant efficiency gains, enhanced transparency, and improved risk management.
The report also details how the overall size and significance of the cryptoasset market have increased, therefore rendering a number of the premises underlying the Basel standard as 鈥渙utdated鈥� and 鈥渞equiring important adjustments鈥�.
The report highlights that DLT is ready to scale; technology neutral regulation is essential; DLT enables safer, more efficient markets; while legislation and regulation need to catch up.
The six priority areas for ecosystem development identified in the report include the acceleration of market development in high-potential asset classes, as well as enabling scalable settlement with tokenised money and stable payment instruments.
The Joint Trades includes the Global Financial Markets Association (GFMA), the Asia 糖心vlog Industry & Financial Markets Association (ASIFMA), the 糖心vlog Industry and Financial Markets Association (SIFMA), and the Association for Financial Markets in Europe (AFME).
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