The Bitcoin Policy Institute said it will review an upcoming Federal Reserve proposal that could change how U.S. banks handle Bitcoin under international banking standards.
The proposal, expected next week, will outline how American banks should implement risk-weighting guidance under the Basel Accords. Once issued, a 90-day public comment period will allow industry participants and financial institutions to give feedback before the rules are finalized.
Currently, Basel rules assign Bitcoin a 1250% risk weighting. This classification treats Bitcoin as a very risky asset, forcing banks to hold large amounts of capital against it. Critics say this discourages banks from offering services to Bitcoin users and companies.
Conner Brown of the Bitcoin Policy Institute said the organization will participate in the process to ensure regulators “get Bitcoin’s treatment right.” The institute plans to review the proposal and submit a formal public comment.
The move comes amid ongoing debates in the U.S. over how digital assets should fit into global banking regulations. Industry advocates say the Fed’s final decision could affect whether traditional banks expand or limit their engagement with Bitcoin services.
This public consultation is seen as a key step for the cryptocurrency sector, as it may determine how easily banks can provide financial support and infrastructure for Bitcoin-related activities in the future.
