Expert flags unclear BTC rules in US Basel III proposal

Pierre Rochard of the Bitcoin Bond Company has criticized the U.S. Federal Reserve's proposed Basel III revisions for their lack of clarity on capital requirements for Bitcoin, Cointelegraph reported. In a comment letter submitted to the Fed, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC), Rochard argued that authorities should not finalize the regulations without providing a clear rationale and framework. He warned that the ambiguity could increase legal risks for large banks involved in holding, lending, custody, and derivatives trading of BTC, potentially causing market confusion. Currently, Bitcoin is subject to a 1250% risk weight under the Basel framework. Rochard emphasized that while authorities have provided guidance for treating stock tokens similarly to traditional stocks, they have remained silent on BTC.