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Opinion: Basel bank capital rules create "bottleneck" for cryptocurrencies

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2025-08-16 23:51:55
According to Chris Perkins, president of investment firm CoinFund, bank capital requirements imposed by the Basel Committee on Banking Supervision (BCBS), which sets banking standards, have created a "bottleneck" aimed at stifling the growth of the crypto industry.
Perkins said current capital rules reduce banks' return on equity (ROE) - a crucial measure of profitability in banking - by setting higher reserve requirements for holding cryptocurrencies, making crypto-related activities too expensive for banks.
He added: "It's a different kind of bottleneck, it's not direct. It's a very subtle way of dampening incentives by making it extremely expensive for banks to do the activity, so that banks will think'I can't do it '."
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