U.S. regulators may make it costly for banks to hold Bitcoin. The Fed is proposing Basel III rules this week ↓ Key details: • BTC classified as a Group 2b asset • Assigned a 1,250% risk weight Implication: • $100M in BTC → treated as $1.25B in risk-weighted assets • Requires ~100% capital backing For more context: • Treasuries → 0% • Corporate loans → 20–100% • BTC → 1,250% Industry view: • Bitcoin is liquid and transparent • The classification doesn’t reflect actual risk characteristics Meanwhile, corporate treasuries already hold >1.1M BTC. Banks, the most regulated holders, face the highest penalties. Not final yet. But directionally, this limits bank balance sheet exposure to BTC. Author: Green But Red 📱 X (Twitter) | 📱 Telegram