Basel III's Crypto Rule: A $125 Price Tag Per $100 Bitcoin

The Basel Committee on Banking Supervision (BCBS) finalized its crypto asset prudential standard, known as SCO60, in December 2022. As of January 1, 2026, this standard assigns unbacked crypto assets, such as Bitcoin and Ethereum, a 1,250% risk weight.

This means that banks must hold $125 of capital for every $100 of Bitcoin on their balance sheet. In comparison, a standard equity position carries a 100% risk weight.

The effective 12.5x capital multiplier versus standard equities makes proprietary crypto positions structurally unviable for most regulated banks under current rules.