The Basel Committee on Banking Supervision has recently introduced a new disclosure framework for banks’ crypto exposures, with targeted amendments to its cryptoasset standards. These changes are set to be implemented by January 1, 2026, with the aim of tightening criteria for certain stablecoins to receive preferential regulatory treatment. This initiative, developed over the course of a year, is part of the Bank for International Settlements’ efforts to establish more robust and consistent regulatory practices within the rapidly evolving digital asset landscape.
Under the new disclosure framework, known as DIS55, banks will be required to furnish detailed information about their crypto activities using standardized tables and templates. This includes qualitative descriptions of business activities involving crypto-assets, as well as quantitative data on capital and liquidity requirements. By standardizing these disclosures, the Basel Committee intends to enhance market discipline, reduce information asymmetries, and improve overall transparency and stability in the financial system.
In addition to providing information about their crypto exposures and related capital requirements, banks must also disclose how they assess risks and classify these assets. The updated standards introduce a new definition of “materiality” for certain crypto-assets and establish thresholds for disclosure obligations based on asset exposure levels. Moreover, lenders will be required to report average daily values of their crypto holdings to provide a clearer understanding of their risk profiles. Despite feedback from the industry, the Committee maintains the importance of segregating credit and market risks for tokenized assets.
The Basel Committee has also revised its prudential standard for crypto-assets to further refine the regulatory treatment of stablecoins. The amendments aim to clarify the criteria for stablecoins eligible for preferential regulatory treatment while ensuring a harmonized interpretation of standards across different jurisdictions. Technical adjustments, such as removing detailed requirements and clarifying the scope of disclosures, have also been incorporated to streamline regulatory processes.
In its communication, the Basel Committee underscores its commitment to ongoing monitoring of developments in cryptoasset markets and readiness to adjust regulatory frameworks in response to emerging risks. By continuously evaluating and updating standards, the Committee seeks to safeguard financial stability, create a level playing field for market participants, and foster a more secure and transparent environment for crypto-related activities.