The 2026 update to Basel III capital rules could transform Bitcoin's financial landscape. Currently, Bitcoin carries a 1,250% risk weight-making it nearly impossible for banks to hold or offer BTC services.
Market analyst Nic Puckrin says even a slight improvement in BTC’s classification would open the door for banks to integrate Bitcoin into the financial system. Under current rules, banks must hold reserves equal to the full value of any BTC on their balance sheets.
Gold, government bonds, and physical cash carry 0% risk weights, while investment-grade corporate bonds are capped at 75%. Analysts argue the current framework misprices risk.
Crypto executives and industry leaders are pushing for reform, calling the current rules a covert barrier to financial innovation.
