Six U.S. Senators Challenge 1,250% Bitcoin Capital Rule on June 4, Urge Regulators to Overhaul Standards

According to Bitcoin.com News, six U.S. senators on June 4 released a letter urging the Federal Reserve, FDIC, and Office of the Comptroller of the Currency to revisit digital asset capital standards. Senators Cynthia Lummis, Dan Sullivan, Bill Hagerty, Bernie Moreno, Ted Budd, and Jon Husted said that a 1,250% risk weight under the Basel framework requires banks to hold capital equal to 100% of their bitcoin exposure, making institutional participation in crypto markets economically impractical.

The lawmakers argued that the rule conflicts with regulators' recent technology-neutral treatment of tokenized securities and urged a reassessment of how each asset's underlying risk should be evaluated. The senators wrote: "We encourage you to begin work on a new capital framework for digital asset activities."