Bitcoin industry representative Pierre Rochard has formally warned top US banking regulators that their proposed capital rule overhaul fails to address how banks should treat Bitcoin-related activities. In a comment letter to the Federal Reserve, FDIC, and OCC, Rochard argued this regulatory gap creates legal risk and leaves banks uncertain about the capital required for Bitcoin custody, lending, and holdings.
Pierre Rochard, CEO of The Bitcoin Bond Company, warned US regulators their sweeping Basel III capital proposals leave a critical gap regarding Bitcoin. The March 19 package did not mention Bitcoin, crypto, or digital assets, creating uncertainty for bank exposures.
Rochard submitted a formal comment arguing regulators cannot finalize rules without explaining Bitcoin’s capital framework. He stated a final rule that quietly imposes a treatment without explicit explanation could face legal vulnerability.
The gap matters because the international Basel framework imposes a harsh 1,250% risk weight on unbacked crypto like Bitcoin. US proposals do not clarify if this standard will apply, leaving bank economics for Bitcoin activities unresolved.
Rochard noted regulators recently gave clear guidance for tokenized securities, stating the framework is “technology neutral.” He contrasted this with the continued lack of comparable explanation for Bitcoin exposures, increasing industry uncertainty.
“The fiat system should stop sabotaging itself,” Rochard said in his comment. “Bitcoin banking rules would improve bank net interest margins and lower interest rates for borrowers.” Before the proposal’s release, some analysts had expected it could ease capital requirements for Bitcoin activities.
