Do NOT ignore this shift.
— Nic (@nicrypto) March 14, 2026
If this changes, the institutional gateway to Bitcoin could blow wide open.
Right now banks treat BTC as a toxic asset under Basel rules.
It carries a 1,250% risk weight, meaning banks basically have to hold 1:1 capital against any Bitcoin exposure.…
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Bitcoin could benefit from a Basel banking rules reform
20h05 ▪
3
min read ▪ by
Getting informed
▪
Bitcoin (BTC)
Summarize this article with:
A reform of Basel banking rules could well change the game for Bitcoin. Currently, these rules severely limit the institutional adoption of the crypto queen. But if the tide turns, the consequences could be historic. Breakdown.
In brief
- Basel rules impose a 1,250% risk weight on Bitcoin, limiting its adoption by banks.
- A reform of Basel rules could allow financial institutions to hold and offer services related to Bitcoin.
- This evolution would pave the way for increased liquidity and new financial products, boosting institutional demand.
Why do Basel rules hinder the adoption of Bitcoin by banks?
Basel rules III impose a risk weight of 1,250% for Bitcoin to banks. This means a bank must hold capital equivalent to 125% of the value of its BTC holdings. A constraint that makes any significant exposure to this crypto almost impossible. For comparison, government bonds or gold have a risk weight of 0%, while corporate bonds range between 20% and 150%.
As a result, Bitcoin is treated as the riskiest asset, which discourages financial institutions. Banks, seeking to optimize their capital, thus avoid BTC. According to analyst Nic Puckrin, this situation creates a regulatory wall that prevents the integration of Bitcoin (BTC) into the traditional financial system.
How could a reform of Basel rules boost BTC?
A reduction in Bitcoin’s risk weight could trigger a massive influx of liquidity. Indeed, if this weight drops, for example, from 1,250% to 500%, banks could finally hold BTC without immobilizing so much capital. This reform would open the door to new financial products, such as ETFs or loans secured by bitcoin.
Institutional investors, until now reluctant, could then enter the market massively. Experts emphasize that this development would be a major turning point, as it would legitimize Bitcoin in the eyes of traditional players and stimulate its demand. However, challenges remain, notably BTC’s volatility. Banks will have to find ways to manage this risk to fully take advantage of this opportunity.
A reform of Basel rules could transform the Bitcoin landscape. Investors should closely follow these developments as they could open unprecedented opportunities. And you, would you be ready to invest in BTC if banks committed to it?
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The world is evolving and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, nothing is better than writing informative and relaxed articles.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.