The Basel III rules, which govern bank capital requirements, are set to be updated in 2026, and if Bitcoin (BTC) receives a lower risk rating in the revised rules, it could potentially trigger a “huge” influx of liquidity into BTC, according to market analyst Nic Puckrin.
Under the current Basel rules, BTC and similar digital assets are given a 1,250% risk weight, meaning banks must hold reserve assets at a 1:1 ratio to back any Bitcoin held on their balance sheets, Puckrin said.
These restrictive capital requirements make it “almost impossible” for banks to hold BTC or offer BTC-related services, he added. He said:
“The Fed just announced a proposal on how these rules will be implemented in the US, with a 90-day public comment window. If BTC’s treatment improves even…
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Source cointelegraph.com
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