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.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitcoin Rules for Banks May Change! appeared first on Coin Engineer.

White House Official: U.S. Wants to Acquire as Much Bitcoin as Possible

A White House official told crypto industry leaders this week that the Trump administration aims to acquire as much Bitcoin as possible.

During a closed-door meeting on Tuesday hosted by the Bitcoin Policy Institute, Bo Hines, Executive Director of the Presidential Working Group on Digital Assets, confirmed that the White House is intent on purchasing as much BTC as it can. When asked how much Bitcoin the government plans to acquire, Hines joked that it was like asking someone how many dollars they want.

White House officials confirmed Hines’ statement, emphasizing that the Bitcoin acquisitions would be “budget-neutral” and would not impose additional costs on taxpayers.

The meeting followed the “Bitcoin for America” policy summit and included prominent Bitcoin figures such as Michael Saylor, co-founder of Strategy, Fred Thiel, CEO of Marathon Digital, Nathan McCauley, CEO of Anchorage Digital, and David Bailey, CEO of Bitcoin Magazine. U.S. Senators Cynthia Lummis (R-WY), Bill Hagerty (R-TN), and Bernie Moreno (R-OH) also attended the event.

White House Supports Legislation for Strategic Bitcoin Reserve

During the meeting, a participant asked Bo Hines if the White House supports the Bitcoin Act, a bill reintroduced by Senator Lummis, which requires the U.S. government to acquire one million BTC. The bill also aims to legalize the Strategic Bitcoin Reserve established by President Trump’s recent executive order.

In response, Hines turned to Lummis, seated next to him, and stated that the White House plans to support legislation to make the Strategic Bitcoin Reserve a law and will push for it to pass Congress. However, White House officials clarified that Hines did not explicitly endorse any specific piece of legislation during the meeting.

U.S. Bitcoin Reserve and Budget Debate Over Lummis’ Bill

The U.S. government is currently estimated to hold around 200,000 BTC, acquired through civil and criminal forfeitures. The White House has expressed support for acquiring more Bitcoin to build a strategic reserve, as long as the purchases remain “budget-neutral.”

Senator Lummis’ Bitcoin Act proposes to purchase $80 billion worth of BTC, and the financing is planned to come from the Federal Reserve’s gold certificates being revalued at current market prices. However, whether this method truly remains budget-neutral is a matter of debate.

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.

The post U.S. Government Plans to Acquire as Much Bitcoin as Possible! appeared first on Coin Engineer.