Crypto Law Profile
Basel SCO60 sets global prudential capital, liquidity, leverage, large-exposure, supervisory review and disclosure treatment for banks’ cryptoasset exposures. In force in the Basel Framework from Jan. 1, 2026.
SCO60: Cryptoasset exposures is the Basel Committee on Banking Supervision’s global prudential standard for banks’ cryptoasset exposures. It sits in the consolidated Basel Framework and is in force in the Basel Framework from Jan. 1, 2026. The standard does not operate as a self-executing statute; member jurisdictions implement Basel standards through their own banking laws, regulations or supervisory guidance.
The standard is designed for prudential treatment rather than market conduct regulation. It addresses how cryptoasset exposures feed into bank capital, liquidity, leverage, large-exposure, operational risk, supervisory review and disclosure frameworks. Its scope includes tokenised traditional assets, certain stablecoins, unbacked cryptoassets and some cryptoasset activities, while the Basel text states that central bank digital currencies are not covered by SCO60.
SCO60 divides cryptoassets into Group 1 and Group 2. Group 1 assets meet the standard’s classification conditions and include tokenised traditional assets, labelled Group 1a, and cryptoassets with effective stabilisation mechanisms, labelled Group 1b. Group 2 assets fail one or more classification conditions and include unbacked cryptoassets as well as tokenised traditional assets or stablecoins that do not qualify for Group 1 treatment.
For Group 1 cryptoassets, SCO60 generally applies capital requirements based on the risk weights of the underlying exposures under the wider Basel Framework. Authorities may apply an infrastructure risk add-on for Group 1 assets where weaknesses are observed in the infrastructure on which the cryptoasset depends.
For Group 2 cryptoassets, SCO60 uses a conservative prudential approach. A bank’s total exposure to Group 2 cryptoassets should generally remain below 1% of Tier 1 capital and must not exceed 2%. Amounts above the 1% threshold receive Group 2b treatment, and a breach of the 2% limit causes all Group 2 exposures to receive Group 2b treatment. The framework also covers credit valuation adjustment risk, counterparty credit risk, operational risk, liquidity risk, leverage-ratio treatment and large-exposure requirements.
The July 2024 targeted amendments focus in part on the criteria for stablecoins to receive preferential Group 1b treatment. The Basel Committee said the amendments were intended to promote a consistent understanding of the standard, particularly for stablecoin classification, and to clarify technical aspects of the prudential framework.
Alongside SCO60, the Basel Committee finalised a Pillar 3 disclosure framework for banks’ cryptoasset exposures. The disclosure framework includes qualitative and quantitative templates intended to improve information availability and market discipline. It is implemented from Jan. 1, 2026, alongside the revised cryptoasset standard.
The Basel Committee published the original final prudential standard on Dec. 16, 2022. On May 13, 2024, the Group of Central Bank Governors and Heads of Supervision deferred implementation by one year to Jan. 1, 2026. On July 17, 2024, the Basel Committee published final targeted amendments and the related disclosure framework, both with the same implementation date.
As of June 6, 2026, SCO60 is treated here as in force within the Basel Framework. However, the Basel Committee does not have formal supranational authority and its decisions do not have direct legal force. National implementation, supervisory expectations and any stricter local treatments should be checked jurisdiction by jurisdiction.
The Basel Committee announced in November 2025 that it would expedite a review of targeted elements of the cryptoasset standard. In February 2026, it said the review was progressing and that an update would be provided later in 2026. Editors should monitor BIS updates for amendments or consultation material that could affect this profile.
Covers banks’ exposures to private digital assets that depend on cryptography and DLT or similar technology; CBDCs are outside SCO60.
Creates Group 1a for tokenised traditional assets, Group 1b for qualifying stablecoin-style assets, and Group 2a/2b for assets that fail conditions.
Group 1 generally follows underlying Basel risk weights; Group 2 receives a conservative treatment with limited or no hedge recognition.
Group 2 exposures should generally stay below 1% of Tier 1 capital and must not exceed 2%, with Group 2b treatment triggered by breaches.
July 2024 amendments tightened and clarified the criteria for certain stablecoins to receive preferential Group 1b regulatory treatment.
Related Pillar 3 tables and templates require qualitative and quantitative disclosure of banks’ cryptoasset exposures.
BCBS published the final prudential standard for banks’ cryptoasset exposures as new Basel Framework chapter SCO60.
GHOS deferred implementation of the cryptoasset standard by one year to Jan. 1, 2026.
BCBS published targeted amendments to SCO60 and a final disclosure framework for cryptoasset exposures.
Revised SCO60 and the related disclosure framework have an implementation date of Jan. 1, 2026.
BCBS said its targeted review of elements of the cryptoasset prudential standard was progressing.
Bank for International Settlements, Basel Committee on Banking Supervision, Group of Central Bank Governors and Heads of Supervision
Cryptoassets, Stablecoins, Tokenized traditional assets, Unbacked cryptoassets
SCO60 is a Basel Committee global standard, not a self-executing statute. Member jurisdictions implement Basel standards through local banking law, regulation or supervisory guidance. BCBS had a targeted review underway as of February 2026.
