A group of finance industry bodies are urging a reevaluation of upcoming regulatory standards that could hinder banks’ participation in crypto markets. The Basel Committee on Banking Supervision set standards in 2022 for managing crypto asset risks, but industry groups argue they are outdated. The crypto market has grown rapidly, prompting banks to seek easier access under a pro-crypto U.S. regulatory environment.

The proposed standards may make it economically unfeasible for banks to engage in the crypto market, according to an open letter to the Basel Committee. The letter calls for a temporary pause in implementation to gather new information and make necessary changes. Signatories include mainstream financial sector groups and crypto industry representatives.

The Basel Committee, which lacks enforcement powers, is set to implement the crypto asset standards in January 2026. The Bank for International Settlements, where the committee is located, has not yet commented on the industry’s concerns. The push for regulatory changes follows a series of collapses in the crypto industry in 2022, highlighting the need for oversight and accountability.

Read more at Yahoo Finance.: Finance industry bodies call for changes to crypto rules for banks