Basel Committee Tightens Crypto Rules, Favoring Centralized Stablecoins

• BIS’s new crypto asset standards favor permissioned stablecoins over permissionless ones.
• Caitlin Long criticizes the BIS’s decision, seeing it as backward innovation. 
• The framework also requires banks to provide standardized qualitative information about their crypto activities.

The Bank for International Settlements (BIS), through the Basel Committee on Banking Supervision, has announced targeted amendments to its crypto asset standards. These amendments prioritize stablecoins issued on permissioned blockchains over those on permissionless ones, a regulatory shift set to take effect on January 1, 2026.

The amendments aim to clarify the prudential treatment of stablecoins, granting preferential “Group 1b” regulatory status to those on permissioned blockchains. This decision could significantly impact banks …

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