Nic Puckrin says a 2026 update to Basel III bank capital rules could be a major catalyst for bitcoin adoption inside traditional finance.
He argues that if bitcoin receives even a modestly lower risk rating in the revised framework, it could unlock a “huge” amount of liquidity for BTC.
Why Basel treatment matters
Under current Basel rules, bitcoin and similar digital assets are assigned a 1,250% risk weight.
Puckrin said that effectively forces banks to hold reserve assets at a 1:1 ratio against any bitcoin held, making it “almost impossible” for banks to keep BTC on balance sheets or offer related services.
Puckrin wrote:
“The Fed just announced a proposal on how these rules will be implemented in the US, with a 90-day public comment window. If BTC’s treatment improves even slightly, it could open the door for banks to finally integrate BTC into the financial system.”
A 2026 timeline and a US comment window
Puckrin pointed to a Federal Reserve proposal on US implementation, including a 90-day public comment period.
Basel III capital requirements are slated for updates in 2026.
Risk weights compared to bonds and gold
Jeff Walton, chief risk officer at Bitcoin treasury company Strive, contrasted bitcoin’s 1,250% risk weight with other assets.
He said investment-grade corporate bonds can carry risk weights up to 75%, while gold, government bonds, and physical cash have a 0% risk weight.
Walton added:
“Risk is mispriced.”
‘Chokepoint’ concerns
Chris Perkins, president of CoinFund, described Basel capital requirements as a subtle way to choke off crypto-related activity by making it too expensive for banks.
Perkins said:
“It’s a very nuanced way of suppressing activity by making it so expensive for the bank to do those activities.”
