Fed to Advance Basel III Crypto Rules with 1,250% Risk Weight for Bitcoin

Michelle Bowman, Vice Chair for Supervision at the Federal Reserve, said U.S. regulators plan to unveil proposed rules during the week of March 17"21 to implement the final phase of Basel III, with a 90-day public comment period to follow, market sources cited by ChainCatcher report. Under the global crypto framework finalized by the Basel Committee in 2022, Bitcoin is categorized as a Category 2b asset and assigned a 1,250% risk weight, meaning a $100 million Bitcoin exposure requires roughly $100 million in capital. Industry groups have criticized the framework for misclassifying Bitcoin and limiting banks' ability to offer related services, ChainCatcher noted.