“In the coming weeks, we will propose rules to implement the final phase of Basel III in the United States,” Bowman said during the speech.
Under Basel math, that classification brings the infamous 1,250% risk weight — the maximum penalty allowed in the capital rulebook.
And critics aren’t limited to policy groups.
Suggestions include replacing the fixed 1,250% charge with risk-sensitive calculations, introducing graduated concentration limits, and recognizing hedging strategies already used in other asset classes.
Even the Basel Committee has hinted that the conversation is evolving. The group announced in late 2025 that it plans a targeted review of its cryptoasset framework as the market matures and regulatory understanding improves.
FAQ Why does Basel III assign bitcoin a 1,250% risk weight? Because regulators classify it as a high-risk “Group 2b” cryptoasset, triggering the strictest capital requirement allowed under the Basel framework. What does a 1,250% risk weight mean for banks? It effectively requires banks to hold capital equal to the full value of their bitcoin exposure, making significant holdings economically difficult. What did Strategy CEO Phong Le say about the Basel rules? Le argued the Basel capital framework strongly influences how banks interact with bitcoin and urged regulators to review the asset’s treatment. When will the Federal Reserve release the Basel proposal? Regulators expect the proposal during the week of March 17–21, followed by a 90-day public comment period.
