A group of major global financial trade associations, along with Boston Consulting Group and legal advisors Ashurst and Sullivan & Cromwell, have called on the Basel Committee on Banking Supervision (BCBS) to pause and reconsider its Cryptoasset Exposures Standard (SCO60). The coalition sent a letter recommending a delay in implementing SCO60, which is scheduled to take effect in January 2026. They argue that the current standard is too conservative and does not align with actual market risks or risk management practices.
The joint letter urges BCBS to conduct a targeted consultation and redesign of the cryptoasset standard. According to the coalition, "the excessively conservative and overly punitive capital treatment of cryptoassets ... is misaligned with actual risks," leading them to request revisions that would "better reflect actual risk profiles and support responsible innovation within the regulatory perimeter."
Alongside their letter, the group released a report titled “The Impact of DLT in Capital Markets: Ready for Adoption, Time to Act.” The report describes how distributed ledger technology (DLT) is changing securities issuance, collateral management, and fund operations. It presents live use cases where DLT has led to efficiency gains, greater transparency, and improved risk management. The report also notes that as the size and significance of the cryptoasset market have grown, some assumptions behind existing Basel standards are now outdated.
Institutional adoption of DLT is increasing worldwide. Tokenized money market funds and digital bond issuances are becoming more common as technology matures.
The coalition emphasizes that regulation should be technology-neutral. They state that "prudential frameworks must focus on the underlying financial activity and risk—not the technology used." They warn that strict capital requirements for cryptoassets could push innovation outside regulated markets.
They also call for regulatory reform to keep pace with developments in DLT-based finance. According to their findings, DLT enables safer markets by reducing settlement times, improving liquidity, and strengthening operational resilience through applications such as collateral management and fund tokenization.
The recommendations include accelerating development in high-potential asset classes; clarifying legal foundations; ensuring interoperability; addressing integration gaps; enabling scalable settlement using tokenized money; and fostering public-private coordination.
According to the group’s statement: "The stage for mass adoption of tokenization in capital markets is set, driven by clearer regulatory pathways, mature technology platforms and committed institutional participation. Now is the time for coordinated action to harness the benefits of DLT, modernize financial infrastructure and support sustained economic growth."
Organizations involved include Global Financial Markets Association (GFMA), Bank Policy Institute (BPI), Futures Industry Association (FIA), Financial Services Forum (FSF), Global Blockchain Business Council (GBBC), Global Digital Finance (GDF), Institute of International Finance (IIF), International Swaps and Derivatives Association (ISDA), Asia Securities Industry & Financial Markets Association (ASIFMA), Securities Industry and Financial Markets Association (SIFMA), and Association for Financial Markets in Europe (AFME).
Further details about these organizations highlight their roles representing various sectors across global financial markets—advocating policy changes, supporting industry best practices, conducting research on regulatory topics such as cybersecurity or derivatives safety standards—and promoting open dialogue between industry participants worldwide.
Contact information for representatives from each association was provided for follow-up inquiries.