On 14 December 2023, the Basel Committee on Banking Supervision opened a public consultation on a consultative document which proposes certain amendments to the crypto-asset standard on the prudential treatment of banks’ exposures to crypto-assets that is set out in Chapter SCO60 of the consolidated Basel Framework. The proposed changes relate to the requirements that determine whether banks can include the stablecoins to which they are exposed in the Group 1b category, to the composition of the reserve assets of stablecoins, as well as to the use of statistical test by banks to assess the stability of the market value of stablecoins. The document also contains various technical amendments to help promote a consistent understanding of the crypto-asset standard. While Annex 1 to the document sets out the specific proposed changes to SCO60, Annex 2 lists a set of frequently asked questions (FAQs) and answers which are not subject to consultation and which the Committee agreed to add to SCO60 in the Basel Framework. Stakeholder comments on all aspects of the proposed amendments to the crypto-asset standard should be submitted on the following webpage by 28 March 2024. All comments will be published on the website of the Bank for International Settlements (BIS) unless a respondent specifically requests confidential treatment.
