Bitcoin Policy Institute to Assess Federal Reserve Basel Proposal on Bitcoin Risk Rules
The Bitcoin Policy Institute announced it will review an upcoming Federal Reserve proposal that could influence how U.S. banks handle Bitcoin under international banking rules. The Fed is expected to release a proposal next week detailing how major banks should apply Basel risk-weighting regulations, followed by a 90-day public comment period.
Currently, Basel rules assign Bitcoin a 1250% risk weight, classifying it as an extremely high-risk asset. This requires banks to hold significantly larger reserves to cover Bitcoin-related exposures, which critics argue discourages banking engagement with the cryptocurrency sector. The policy could restrict services for Bitcoin firms, custody solutions for investors, and overall financial infrastructure supporting Bitcoin.
The Institute plans to analyze the proposal and submit formal feedback, as the outcome may shape traditional banks' future involvement in the Bitcoin ecosystem.
TheNewsCrypto03/13 14:03
