Crypto industry calls for review of Basel III's 1250% risk weight

Crypto industry figures are urging a reassessment of the Basel III agreement's rule that applies a 1250% risk weight to digital assets. The Basel Committee on Banking Supervision has classified cryptocurrencies in its highest-risk category, mandating the 1250% risk weight for any bank exposure to the asset class. According to Cointelegraph, Jeff Walton, Chief Risk Officer at U.S. asset manager Strive, argued that U.S. banking regulations must be reformed for the country to become a global crypto hub. He asserted that the current risk weight is mispriced.