BTC treasury executives call for reform of 1,250% risk weight in Basel III
Private equity, which has the second-highest risk weighting, carries a 400% weight under the current Basel III banking framework.
Crypto treasury executives are calling on the Basel Committee on Banking Supervision (BCBS), an international banking regulatory body, to revise the 1,250% risk weight for Bitcoin and other cryptocurrencies under the Basel III framework.
The 1,250% capital requirement means that banks must back any Bitcoin (BTC) on their balance sheets at a 1:1 ratio with approved collateral, making BTC holding more costly than other asset classes.
For comparison, cash, physical gold and government debt carry a 0% risk weight under the Basel III framework.