Analyst says 2026 Basel III update could unlock major Bitcoin liquidity with lower risk weight

Basel III bank capital rules are scheduled for revision in 2026, and analyst Nic Puckrin argues that a lower risk weight for Bitcoin could release substantial liquidity into the asset. Under the current framework, BTC carries a 1,250% risk weight, forcing banks to fully back their holdings with reserves and making crypto services uneconomical. Other industry figures say this regime misprices risk compared with assets like corporate bonds, gold and government bonds, and acts as an indirect constraint on banks' participation in the crypto sector.