Basel Crypto Rules Still Punitive, Harming Bank's Ability to Hold Bitcoin

The Basel Committee's cryptoasset standard has been in effect since January 1, 2026, but it still treats unbacked cryptocurrencies as high-risk assets, carrying a 1,250% risk weight. This makes it economically unviable for banks to hold Bitcoin or other Group 2b assets, which include all purely speculative tokens.

The standard was created in a different time, when regulators were trying to keep crypto out of the banking system altogether. However, with the rise of tokenized deposits, stablecoins, and on-chain settlement, the landscape has changed significantly.

Basel's own review of targeted parts of the standard began in November 2025, and they have promised an update later this year. The Committee acknowledges that the current capital math is too punitive for banks to hold cryptoassets.