Pierre Rochard Urges US Regulators to Clarify Bitcoin Rules in Basel III Rewrite

Pierre Rochard, CEO of The Bitcoin Bond Company, has warned US banking regulators that their proposed Basel III capital framework rewrite leaves uncertainty around how Bitcoin-related activities will be treated. In a formal comment submitted on March 29 to the US Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, Rochard argued that regulators should not finalize rules that determine capital treatment for Bitcoin without clearly explaining the framework and supporting evidence.

The March 19 proposal outlines changes covering credit risk, market risk, operational risk, and counterparty exposure for major US banks. However, it does not mention Bitcoin, cryptocurrency, or digital assets, leaving banks uncertain about how existing categories apply to Bitcoin custody, lending, derivatives, and direct holdings.

Basel Crypto Framework and Legal Risks Highlighted

Rochard referenced the Basel Committee’s SCO60 framework, which assigns a 1,250% risk weight to unbacked crypto assets such as Bitcoin. He stressed that regulators must clarify whether they plan to adopt this standard or apply domestic capital rules instead. Without clear guidance, he warned, unresolved treatment could create legal risks and force banks to interpret rules on their own, increasing uncertainty across the financial sector.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.