Emre Yumlu 
An important regulatory process that could affect Bitcoin’s position within the banking system in the United States is coming to the agenda. The Bitcoin Policy Institute is preparing to examine the new Basel proposal drafted by the US Federal Reserve (Fed), which will determine banks’ risk assessments regarding Bitcoin.
The proposal is considered to play a critical role in determining how major banks operating in the US will interact with Bitcoin and similar digital assets.
Fed Preparing to Publish New Basel Proposal
According to information from officials, the Fed is expected to publish a draft in the coming days explaining how banks should apply risk-weighting rules under the Basel Accords. This regulation will particularly cover large-scale American banks.
Following the publication of the proposal, an approximately 90-day public comment period will begin. During this period, financial institutions, industry representatives, and policy organizations will be able to submit their views and suggestions regarding the draft regulation to the authorities.
The Bitcoin Policy Institute is among the organizations planning to take an active role in this process. The institution’s goal is stated as ensuring that regulators adopt a more balanced and accurate framework when evaluating Bitcoin.
Basel Rules Classify Bitcoin as a High-Risk Asset
Under the current Basel regulations, Bitcoin is considered a very high-risk asset on banks’ balance sheets. Within this framework, a 1250% risk weight is applied to Bitcoin.
This ratio requires banks to hold significantly higher capital when taking any position related to Bitcoin or providing services connected to this asset. Compared to traditional financial assets, this represents a very heavy capital requirement.
Critics argue that this approach creates an effect that could limit banks’ activities in the Bitcoin sector. High capital obligations can cause many financial institutions to avoid offering crypto asset services.
A Critical Process for the Banking Sector
The draft regulation prepared by the Fed is seen as an important part of the ongoing discussions regarding the position of digital assets within the global banking system. Policymakers in the US have long been debating how crypto assets should be integrated into the traditional financial system.
Industry representatives believe that the final decision could be decisive in whether banks expand their services related to Bitcoin. If the regulations maintain the current risk approach, many banks are expected to continue keeping their distance from the crypto sector.
Conversely, if a more balanced risk assessment model is adopted, it could open the door for traditional financial institutions to engage more actively with the Bitcoin ecosystem. Therefore, the Fed’s proposal regarding the Basel application is being closely monitored by both the banking sector and the crypto market.
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