The Bitcoin Policy Institute (BPI) will submit public comments to the Federal Reserve regarding the Basel Framework's risk weight provisions for Bitcoin.

Techub News reported, according to Cointelegraph, that the Bitcoin advocacy group Bitcoin Policy Institute (BPI) announced it will submit public comments on the Federal Reserve's upcoming proposal for implementing the Basel framework, advocating for changes to how Bitcoin's asset risk weight is treated within the bank regulatory system. BPI Executive Director Conner Brown stated that Bitcoin is classified as a high-risk asset under the Basel framework, subject to a 1250% risk weight, which is higher than almost all other asset classes, and is characterized as the "most punitive classification." In contrast, cash, physical gold, and government bonds carry a 0% risk weight. The 1250% capital requirement means banks must hold compliant collateral on a 1:1 basis for holding Bitcoin, significantly increasing the cost for banks to hold the asset and limiting their ability to provide financial services to Bitcoin-related businesses.