Barriers from the Basel Accord on Bitcoin Banking
Strategy CEO Phong Le recently shared insights on platform X, emphasizing how the Basel Accord presents significant hurdles for banks entering the digital asset space, particularly in Bitcoin-related activities. He noted that the framework's capital requirements and risk weighting systems directly affect traditional institutions' willingness to engage with cryptocurrencies.
Challenges for US Crypto Leadership
Le pointed out that while the Basel Committee's regulations hold global influence, the US—being one of 28 jurisdictions—should reconsider its capital treatment under the framework. He argues that current capital rules could hinder the nation's ambition to lead the global crypto industry.
A Call for Regulatory Evolution
Le urged regulators to adopt a more nuanced view of digital asset risks and support updated capital calculation methods suited for modern finance. He stressed that only through such reforms can banks gain access to the Bitcoin ecosystem, ultimately advancing the entire sector.