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Bitcoin Bond Company CEO Pierre Rochard says US regulators’ Basel III revamp cannot quietly decide how banks treat Bitcoin without clearly explaining the rules and evidence behind them.Pierre Rochard, CEO of The Bitcoin Bond Company, warned US banking regulators that their sweeping Basel III capital rewrite leaves unresolved how Bitcoin-related activities should be treated, a gap he says could create legal risk and shape how much capital banks must hold against the asset.
submitted March 29 to the US Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, Rochard said agencies cannot finalize rules that effectively determine capital treatment for Bitcoin a capital treatment for Bitcoin-related activities without explicit explanation could face legal vulnerability.He pointed to the Basel Committee’s crypto asset framework, known as SCO60, which assigns a 1,250% risk weight to unbacked crypto assets such as Bitcoin. According to Rochard, US regulators must clarify whether they intend to adopt that standard, apply elements of it selectively, or rely instead on existing domestic capital categories.issued a tokenized securities FAQ stating that eligible tokenized securities should generally receive the same capital treatment as their non-tokenized counterparts and that the capital framework is “technology neutral,” giving banks clear guidance on that front. By contrast, there is still no comparable explanation for how Bitcoin exposures should be treated. Without that clarity, banks would be left to interpret how rules apply to direct Bitcoin holdings, Bitcoin-collateralized lending, custody services and derivatives exposure, increasing uncertainty across the industry. “The fiat system should stop sabotaging itself,” Rochard said in his comment on X. “Bitcoin banking rules would improve bank net interest margins and lower interest rates for borrowers.”Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy
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