Global banking standards still impose heavy capital charges on crypto assets even as regulators open the door to stablecoins and tokenized deposits. The Basel Committee's framework, effective since January, treats unbacked crypto with a 1,250 percent risk weight. This mismatch could keep much of the activity outside traditional banks.
The rules, known as SCO60, were shaped by events such as the collapse of FTX. They place most crypto holdings in the highest-risk category, requiring banks to set aside equity equal to their full exposure.
Tokenized assets have already grown beyond 16 billion dollars, while the stablecoin market stands near 320 billion dollars. Yet the same capital treatment applies to speculative tokens and regulated instruments like tokenized treasuries.
The United States has rejected the Basel approach in favor of a risk-based model. Europe is incorporating the stricter standards into its own rules, creating potential fragmentation for global banks.
The Basel Committee began an expedited review of the framework in November 2025 and plans an update later this year.
