The Basel Committee on Banking Supervision Enhances Crypto Disclosure Frameworks

The Basel Committee on Banking Supervision has recently unveiled its final disclosure framework for banks’ crypto exposures, along with targeted amendments to its cryptoasset standards. These adjustments are designed to “tighten the criteria for certain stablecoins to receive preferential regulatory treatment.” Scheduled to take effect on January 1, 2026, these standards are the result of over a year of work by the Committee, which is part of the Bank for International Settlements (BIS).

Improving Market Discipline

Under the new disclosure framework, known as DIS55, banks will be required to provide detailed information about their crypto activities using standardized tables and templates. This includes qualitative descriptions of their crypto-related business and quantitative data on capital and liquidity requirements. By standardizing these disclosures, the Committee aims to enhance market discipline and close information gaps among market participants, ultimately increasing market transparency and stability.

In addition to sharing information on their crypto exposures and related capital requirements, banks will also need to disclose how they assess risks and classify these assets. The updated standards introduce a new definition of “materiality” for specific crypto-assets and establish thresholds for when banks must reveal their exposures. Banks will also be required to report average daily values of their crypto holdings to provide a clearer picture of their risk levels.

While addressing industry feedback, the Committee maintains that banks should report credit and market risks for tokenized assets separately. Beyond the disclosure framework, the Committee has revised its prudential standard for crypto-assets, focusing on refining the criteria for certain stablecoins to receive preferential regulatory treatment. These changes aim to clarify the regulatory framework and ensure a consistent understanding of standards across different jurisdictions. Technical amendments, such as removing detailed requirements and clarifying the scope of disclosures, have also been incorporated.

The Basel Committee emphasized its commitment to monitoring developments in the cryptoasset markets and adjusting its regulatory framework as needed to address emerging risks. By enhancing transparency, improving risk assessment, and strengthening regulatory standards, the Committee aims to foster a more stable and secure environment for banks’ engagement with the cryptoasset market.