Yesterday the major global securities, derivatives and financial trade associations jointly wrote a letter to the Bank for International Settlements (BIS) providing feedback on proposed crypto-asset rules for financial institutions. In June, the Basel Committee on Banking Supervision proposed hefty capital requirements on banks for getting involved with cryptocurrencies and crypto-assets (a 1250% risk weighting).
The trade associations claim that the proposed rules are overly stringent. The associations include those for the securities sector GFMA (including SIFMA), derivatives associations ISDA and FIA, the Institute for International Finance (IIF), the Financial Services Forum and cryptocurrency body, the Chamber of Digital Commerce.
“The Consultation would effectively preclude banks from being involved in the crypto assets sector, by making it economically prohibitive to do so,” said Kenneth E. Bentsen, Jr., CEO of GFMA and SIFMA. “We believe DLT and blockchain can drive efficiencies and help customers, and we see value in delivering those benefits through banks, where there will be transparency, rather than pushing that activity to the unregulated sector.”
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