Crypto Managers Are Forcing a Revision of Basel III BTC Risk
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Contents
Crypto treasury managers are calling on the international banking regulatory body Basel Committee on Banking Supervision (BCBS) to revise the 1,250% risk weight applied to Bitcoin (BTC) and other cryptocurrencies under the Basel III framework. This requirement forces banks to back BTC on their balance sheets with approved collateral at a 1:1 ratio, making it costly to hold compared to other asset classes. For comparison, cash, physical gold, and government bonds have a 0% risk weight.
Detailed Analysis of Basel III BTC Risk Weights
BCBS proposed a 1,250% risk weight for crypto assets in 2021 and finalized it in 2024. This rate classifies BTC as a speculative asset with high volatility. Banks have to increase their capital reserves 12.5 times to hold BTC; for example, 12.5 million dollars additional capital is needed for 1 million dollars of BTC. This increases the institutional barriers highlighted in BTC detailed analysis.
Call from Crypto Treasury Managers to BCBS
Strive’s chief risk officer Jeff Walton stated that regulations need to change for the US to become the “crypto capital” and that risk is mispriced. CoinFund Chairman Chris Perkins said the rules deter banks from holding crypto by reducing their equity returns. Strategy CEO Phong Le also called for reform.
Asset Comparison of Risk Weights
| Asset | Risk Weight (%) |
|---|---|
| Cash | 0 |
| Physical Gold | 0 |
| Government Bonds | 0 |
| BTC and Crypto | 1.250 |
As the stablecoin market cap approaches 300 billion dollars, discussions on easing requirements in October 2025 took place. BCBS Chairman Erik Thedéen signaled a different approach.
BTC Technical Analysis and Market Data
As of February 20, 2026, BTC price is 67.482,37 USD (+1,50% 24h). RSI 34,67 (Oversold), downtrend, Supertrend Bearish. EMA 20: 71.224,80 USD.
- Supports: S1 65.111,23 USD (79/100 ⭐ Strong), S2 67.003,73 USD (65/100 ⭐ Strong)
- Resistances: R1 69.350,29 USD (70/100 ⭐ Strong), R2 71.675,25 USD (67/100 ⭐ Strong)
While institutional buyers are accumulating BTC, 'Will BTC go to zero' searches are increasing, but BTC futures volume is rising.
What Does Basel III Reform Mean for BTC?
Revision would facilitate banks holding BTC in treasury, increase liquidity. With quantum-resistant updates like BIP-360 (over 7 years), long-term risks decrease. This could make BTC a safe haven like gold.
Crypto Regulations and Future Expectations
BCBS reform would strengthen US crypto leadership. Investors should watch S2 support; if broken, 65K could be tested.