The Bitcoin Policy Institute has pushed back on Basel-derived capital rules it calls “toxic,” urging U.S. regulators to treat Bitcoin appropriately as the Federal Reserve advances proposals to implement the Basel framework. The group's action could influence how banks are allowed to custody, lend, or hold crypto exposures.
The chair of the Basel Committee told the Financial Times that global bank capital rules need a major rethink to address crypto-related risks, arguing current frameworks are inadequate. The call could prompt regulators to tighten capital requirements for banks with crypto exposure.