The new guidelines dictated by the BIS favor stablecoins issued by banks to the detriment of issuing companies such as Tether and Circle.
On July 17, the Basel Committee on Banking Supervision released a report on banks’ exposure to digital assets. The document mandates that banks disclose their activities in the crypto sector, their holdings, and meet stringent liquidity requirements. It also introduces stricter criteria for stablecoins on permissionless blockchains.
According to the new rules, stablecoins on permissioned blockchains will receive favorable regulatory treatment, while those on permissionless blockchains, such as USDT and USDC, will face more rigorous scrutiny and may be subject to restrictions on their operations.
With the new guidelines, the Bank for International Settlements (BIS) prohibits banks from using stablecoins issued on permissionless blockchains and grants regulatory advantages to permissioned stablecoins like JPMCoin from JPMorgan Chase.
The new regulation is set to come into effect starting January 1, 2026.
Reactions from the industry
Caitlin Long, CEO of Custodia Bank, criticized the BIS decision:
For some users on X, banks and governments will not easily relinquish their power and control over financial systems; therefore, the use of stablecoins on permissioned blockchains represents a strategy to maintain their dominance.
