Basel III regulations, which regulate bank capital requirements in the United States, will be revised by 2026.BTC() has a reduced risk rating under the revised rules. This could lead to a “huge” Nic Puckrin, a market analyst, says that BTC is experiencing a surge in liquidity.
Puckrin said.
The capital requirement is one of the most restrictive in the industry. “almost impossible” He added that banks should hold BTCs or provide BTC services. He added:
“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 slightly, it could open the door for banks to finally integrate BTC into the financial system.”
Several crypto treasury executives called in February for reform of the Basel rules Implementing more flexible risk weights on digital assets would enable banks to take part in the Blockchain economy.
Related: Bitcoin advocate group to fight Basel’s ‘toxic’ treatment of cryptocurrency
Basel Rules creates a new type of chokepoint
Basel Committee on Banking Supervision proposed the current capital requirements Cryptocurrencies in 2021 was rated as the most risky category.
Although BTC, crypto and investment-grade bonds are subject to risk weights of up 75% under current regulations, BTC, cryptocurrency, and other digital currencies carry 1,250%. according Jeff Walton Chief Risk Officer at Bitcoin treasury Strive.
Walton added that gold, government bonds, and cash are all low-risk investments. “risk is mispriced.”
Basel’s capital requirements can be viewed as a form of covert extortion. choking off the crypto industryChris Perkins of CoinFund Investments, the president of CoinFund’s investment firm, said to Cointelegraph that these efforts are subtler than those made under Operation Chokepoint 2.0 in order to bankrupt crypto companies.
“It’s a very nuanced way of suppressing activity by making it so expensive for the bank to do those activities,” Perkins, said
Magazine: Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee
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Source: cointelegraph.com
