{"id":55425,"date":"2026-03-13T13:21:22","date_gmt":"2026-03-13T13:21:22","guid":{"rendered":"https:\/\/www.bitrabo.com\/discover\/?p=55425"},"modified":"2026-03-13T13:21:22","modified_gmt":"2026-03-13T13:21:22","slug":"fed-evaluates-risky-bitcoin-rules-for-major-us-banks","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/fed-evaluates-risky-bitcoin-rules-for-major-us-banks\/","title":{"rendered":"Fed Evaluates Risky Bitcoin Rules for Major US Banks"},"content":{"rendered":"\n

The latest discussions around cryptocurrency regulation have reached a critical juncture with the Federal Reserve\u2019s upcoming proposals. For advocates of Bitcoin, the stakes couldn\u2019t be higher. The focus is on whether major U.S. banks will be subjected to a capital framework that continues to categorize Bitcoin as a virtually invisible asset. The contention revolves around Basel\u2019s astounding 1,250% risk weight on some crypto assets, which many argue effectively excludes banks from engaging in the cryptocurrency market.<\/p>\n

Scrutinizing Bitcoin\u2019s Treatment Under Basel Regulations<\/h2>\n

Industry expert Alex Green has highlighted this situation as a pivotal moment in the regulatory landscape. \u201cThe Federal Reserve\u2019s new proposal next week could redefine how banks manage Basel risk-weighting guidelines. Currently, Bitcoin is labeled as a highly risky asset under Basel rules, subjected to a staggering 1250% risk weight, the harshest among asset classes,\u201d he noted. This stringent classification hampers banks from providing indispensable services to Bitcoin investors and companies.<\/p>\n

This development coincides with the Federal Reserve\u2019s broader initiative to reform capital requirements. In a recent address, Fed Vice Chair Michelle Bowman indicated that forthcoming regulations would guide the final phase of Basel III implementation in the U.S., announcing a 90-day period for public commentary following the Fed\u2019s vote next week.<\/p>\n

In his analysis, \u201cBasel\u2019s Risk Weight Quandary,\u201d Green argues<\/a> that the prevailing attitude toward Bitcoin represents a fundamental misunderstanding. He asserts that applying such a stringent risk weight to a globally traded asset\u2014characterized by transparency and minimal counterparty risk\u2014is misguided. Rather than imposing heavy capital reserves, regulators should evaluate Bitcoin within the current market and operational risk frameworks.<\/p>\n

This issue transcends mere possession; it shapes the entire economic landscape surrounding Bitcoin. According to Green, if the regulatory framework makes Bitcoin investments excessively costly, supporting services such as custody and financing will become less viable, ultimately hindering banks\u2019 ability to meet institutional demand efficiently.<\/p>\n

While the Federal Reserve\u2019s proposal does not explicitly focus on cryptocurrencies, Bowman\u2019s remarks emphasize recalibrating capital rules to reflect perceived risks accurately. However, for Bitcoin advocates, the upcoming comment period offers a crucial opportunity to question whether the U.S. should adopt Basel\u2019s stringent crypto guidelines wholesale or shift toward a more nuanced approach based on tangible risk factors.<\/p>\n

As of now, Bitcoin\u2019s market value stands at $71,394, illustrating the ongoing volatility and market dynamics that make thoughtful regulatory approaches even more essential.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The latest discussions around cryptocurrency regulation have reached a critical juncture with the Federal Reserve\u2019s upcoming proposals. For advocates of Bitcoin, the stakes couldn\u2019t be higher. The focus is on whether major U.S. banks will be subjected to a capital framework that continues to categorize Bitcoin as a virtually invisible asset. The contention revolves around […]<\/p>\n","protected":false},"author":14,"featured_media":55426,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"Fed Evaluates Risky Bitcoin Rules for Major US Banks - Bitrabo","description":"The latest discussions around cryptocurrency regulation have reached a critical juncture with the Federal Reserve's upcoming proposals. For advocates of Bitcoin"},"footnotes":""},"categories":[316],"tags":[1397,12366,448,1105,626,857,1006,13528,8028],"class_list":["post-55425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-banks","tag-basel","tag-bitcoin","tag-fed","tag-major","tag-review","tag-set","tag-toxic","tag-treatment"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/55425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=55425"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/55425\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/55426"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=55425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=55425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=55425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}