Basel III Revisions Could Unlock Huge Liquidity for Bitcoin
Basel III rules set by the Basel Committee on Banking Supervision assign a 1,250% risk weight to cryptoassets such as Bitcoin. This requires banks to hold substantial capital against such positions, discouraging them from owning Bitcoin directly or offering related services and slowing its integration into mainstream finance.
Analyst Nic Puckrin said that if the Basel III cryptoasset rules are revised in 2026 and Bitcoin’s risk classification is lowered, banks’ capital burden could ease and potentially unlock huge liquidity. There is no clear estimate of how much capital could be released. The outcome will depend on the substance of the revisions, the timetable for approval and how individual jurisdictions implement them.
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The history behind this eventBitcoin Bond Company CEO Warns U.S. Regulators Basel III Rewrite Overlooks Bitcoin
Basel III is the global bank capital framework established after the financial crisis, with asset risk weights directly determining how much capital banks must set aside. The Basel Committee's SCO60 standard assigns a 1,250% risk weight to unbacked crypto assets such as Bitcoin. How the United States implements the rules will therefore shape the cost and viability of banks' holdings, lending, custody and derivatives businesses.
The Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency proposed revisions to the capital rules on March 19, 2026, without mentioning Bitcoin, cryptocurrency or digital assets anywhere in the text. Pierre Rochard formally submitted comments on March 29, asking the three agencies to explain, item by item, the applicable classifications, whether they would adopt SCO60, and the legal and evidentiary basis for their decisions before finalizing the rules.
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