The American Bankers Association on Friday sent remarks to the Basel Committee on Banking Supervision worrying prudential treatment of banks’ cryptoasset direct exposures. The remarks remained in reaction to the committee’s ask for public input following the release of its 2nd assessment on the subject previously this year.
The committee has actually proposed to divide cryptoassets into 2 broad groups. The very first group satisfies a set of category conditions and is qualified for treatment under the Basel structure with some adjustments and extra assistance, consisting of particular tokenized properties and stablecoins. The 2nd classification consists of properties such as bitcoin that do not meet the category conditions.
ABA worried that additional work was needed to notify the policy dispute. The association likewise noted 3 essential concepts that need to assist supervisory and regulative methods: the requirement to establish a broad understanding of essential functions in numerous cryptoassets, a determination by regulative and supervisory authorities to allow sensible development, and the advantages of performing a considerable share of the cryptoasset market through monitored banks. ABA likewise worried the significance of the committee’s objective of “same risk, same activity, same treatment.”