Bitcoiner Group to Fight Bitcoin’s Treatment as ‘Toxic Asset’
The Bitcoin Policy Institute will challenge the US Federal Reserve's proposed rules implementing Basel guidelines that treat Bitcoin as a toxic asset with a 1,250% risk weighting.Summary
The Bitcoin Policy Institute (BPI) announced it will closely review and submit public comments regarding the US Federal Reserve's proposal on implementing Basel Committee on Banking Supervision guidelines for asset risk weighting. BPI managing director Conner Brown stated that under the current Basel framework, Bitcoin (BTC) is treated as a "toxic asset" with a punitive 1,250% risk weighting, which is harsher than almost all other asset classes, contrasting sharply with assets like cash or gold that carry a 0% risk weight. This high capital requirement makes it very costly for banks to offer financial services to Bitcoin companies and individuals. The Fed, through Vice Chair for Supervision Michelle Bowman, indicated the upcoming rules aim for "more efficient regulation" while preserving safety and soundness. The BPI views this classification as the "most punitive" in the Basel capital framework.
(Source：Cointelegraph)