U.S. Regulators Propose Basel III Rule Impacting Bitcoin
- The Federal Reserve has proposed a Basel III rule imposing a Bitcoin risk weight of 1,250% for banks.
- This proposal could significantly increase capital requirements for banks holding digital assets.
- The proposal includes a standard comment period of up to ninety days for feedback from stakeholders.
The Federal Reserve’s new Basel III proposal aims to impose stringent capital requirements on banks dealing with Bitcoin and other digital assets, potentially deterring financial institutions from entering the cryptocurrency market.
With a proposed Bitcoin risk weight of an unprecedentedly high level, banks might face substantial capital shocks if they choose to engage with digital currencies under these new rules. (Source)
