Expert Warns US Institutions About Bitcoin (BTC)! “Think Carefully!”

An expert has drawn attention to the unclear rules regarding Bitcoin (BTC) in the Basel III proposal and warned the US.

Pierre Rochard, CEO of Bitcoin Bond Company, criticized Basel III regulations, stating that they are unclear regarding capital requirements for Bitcoin.

At this point, Rochard warned US banking regulators that Basel III rules leave an unresolved, empty space regarding how Bitcoin-related activities should be handled.

They warned that this uncertainty could increase legal risks for major banks involved in holding, lending, storing, and trading derivatives of BTC, and potentially lead to market disruption.

In this context, Rochard argued in a letter to the FED, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of Currency (OCC) that Basel officials should not finalize and implement the regulations without providing a clear rationale and framework.

Rochard also emphasized that officials have been clear about other digital assets, providing guidance to treat equity tokens similarly to traditional stocks, but have remained silent on BTC.

Noting that authorities have yet to provide a clear explanation of how Bitcoin risks should be handled, Rochard said, “Without this clarity, banks will have to interpret how the rules apply directly to Bitcoin assets, Bitcoin-backed loans, custody services, and derivatives, which will increase uncertainty across the sector.”

Under current Basel banking regulations, Bitcoin is classified as a very high-risk asset for banks. The 1250% risk weighting set for BTC in the regulations means a stricter capital requirement than almost all other asset classes. According to these rules, banks are required to hold reserve assets in Bitcoin at a 1:1 ratio. This makes it extremely difficult for banks to hold BTC on their balance sheets or provide financial services to Bitcoin-related companies, and it hinders institutional participation in Bitcoin.

The Fed recently stated that it would release a new draft regulation on Basel risk weighting rules for banks, and that a 90-day public consultation period would begin after the new proposal is published.

*This is not investment advice.

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