Basel Banking Standards Vs Bitcoin: Strategy CEO Blasts 1,250% Risk Weight

Bitcoinist02-21 12:30

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Strategy CEO Phong Le is calling for a rethink of how banks are required to capital-charge bitcoin ...

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Ad Disclosure\n\nStrategy CEO Phong Le is calling for a rethink of how banks are required to capital-charge bitcoin ...</p>\n\n<a href=\"https://bitcoinist.com/basel-banking-vs-bitcoin-strategy-ceo/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BITO","symbol_name":"比特币期货ETF-ProShares","start_time":0,"source_url":"https://bitcoinist.com/basel-banking-vs-bitcoin-strategy-ceo/","article_id":"2613210421","we_media_id":null,"thumbnails":["https://bitcoinist.com/wp-content/uploads/2026/02/ChatGPT-Image-Feb-20-2026-12_04_16-PM.png?resize=350%2C250"],"rights":{"source":"bitcoinist_highlight","url":"https://bitcoinist.com/basel-banking-vs-bitcoin-strategy-ceo/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2613210421","pubTimestamp":1771648213,"columns":[],"sourceInfo":{"source_id":"bitcoinist_highlight","name":"Bitcoinst"},"weMediaInfo":null,"summary":"Strategy CEO Phong Le is calling for a rethink of how banks are required to capital-charge bitcoin exposure under Basel-style...","collect":0,"end_time":0,"defaultTopTitle":"bitcoinist.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BITO":"比特币期货ETF-ProShares","BITX":"2倍比特币期货ETF-Volatility Shares","BTC":"Grayscale Bitcoin Mini Trust"},"translate_title":"巴塞尔银行标准与比特币：策略首席执行官抨击1,250%的风险权重","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BITX":0.6,"BITO":0.6,"BTC":0.6},"content_text":"Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure\n\nStrategy CEO Phong Le is calling for a rethink of how banks are required to capital-charge bitcoin exposure under Basel-style rules, arguing that current risk-weighting treatment materially shapes whether regulated institutions can engage with digital assets at all.\nThe catalyst was a chart shared on X that labels bitcoin “unsecured crypto exposure” with a “typical risk weight” of 1,250% under an “Illustrative Basel III-Style” standardized approach, alongside 0% weights for cash, physical gold, and US Treasuries.\n\n\n\n\n\n\nA Capital Penalty For Bank Bitcoin Exposure\nLe framed the issue as structural rather than political, pointing to the way global capital rules flow into national bank regulation. “The Basel Accords set global bank capital standards and risk-weighting rules for assets. These frameworks materially shape how banks engage with digital assets, including bitcoin,” he wrote. “They are developed by the Basel Committee of central banks and regulators across 28 jurisdictions — the US is just one.”\nRelated Reading: Bitcoin Tightens Grip On Crypto Market Amid 50% Altcoin Slump\nHe tied that directly to Washington’s stated ambitions for crypto leadership. “If the US wants to be the Crypto Capital of the World, our implementation of Basel capital treatment deserves careful review,” Le said.\nJeff Walton, who posted the image Le quoted, summarized the contrast in blunt numbers: “Basel III Risk weights for assets: Gold: 0% Public equity: 300% Bitcoin: 1,250%,” adding that if the US wants to be a “crypto capitol,” “the banking regulations need to change,” because “Risk is mispriced.”\n\n\n\n\n\n\n\n\n\n\n\n\nThe chart itself presents a ladder of “typical” risk weights across asset classes. Cash and central bank reserves sit at 0%, physical gold at 0%, and sovereign debt such as US Treasuries (USD, U.S. bank) also at 0%. Investment-grade corporate debt is shown in a 20–75% range, unrated corporate debt at 100%, high-yield at 150%, public equity at 250–300%, and private equity at 400%+. Bitcoin is set apart at 1,250%.\nBasel III-style risk weights | Source: X @PunterJeff\nConner Brown, Head of Strategy at the Bitcoin Policy Institute, argued that the practical effect is to make bank intermediation of bitcoin prohibitively expensive. “It’s hard to overstate how bad of a policy error this is,” he wrote. “Banks are required to set aside capital based on how risky regulators think an asset is. The higher the ‘risk weight,’ the more expensive it is for a bank to hold.”\n\n\n\n\n\n\n\n\n\n\n\n\nRelated Reading: Bitcoin Whales Return To Binance As Market Holds Its Breath\nBrown described the 1,250% figure as translating into a one-for-one capital requirement relative to exposure. In his words, bitcoin’s treatment “means banks must hold $1 in capital for every $1 of Bitcoin exposure,” while gold is treated “the same as cash” with “essentially no capital cost.”\nHe also pushed back on the premise that bitcoin should be penalized relative to legacy assets, pointing to operational traits he sees as favorable for risk management and market functioning, including continuous trading, fast auditability of holdings, fixed supply, rapid global settlement, and transparent pricing. The result, he argued, is that regulators have effectively discouraged banks from offering custody and related services that corporates and individuals might prefer inside the regulated perimeter.\nBrown said the knock-on effects extend beyond bank balance sheets to competitiveness. He argued the framework diverts activity toward “non-bank entities and offshore jurisdictions,” which he characterized as carrying higher risks, and warned that failing to adjust the approach could leave US institutions at a disadvantage globally.\nAt press time, Bitcoin traded at $67,857.\nBitcoin must stay above the 200-week EMA, 1-week chart | Source: BTCUSDT on TradingView.com\nFeatured image created with DALL.E, chart from TradingView.com\n\n\n\nEditorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. 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