A little-known 1,250% rule could lock US banks out of Bitcoin

- US regulators are playing 4D chess with a rule that effectively taxes Bitcoin exposure at 1,250%. Yes, you read that right. To hold $100M in BTC, banks need $100M–$150M in capital. It’s not regulation; it’s a financial moat designed to keep traditional finance out while they pretend to be "crypto-friendly." The CLARITY Act gives them permission to enter, but the Basel framework hands them a padlock. Senators are finally screaming that this is a de facto ban, but until the Fed and FDIC stop treating digital assets like radioactive waste, banks will stay on the sidelines watching moonboys do the heavy lifting. Enjoy your permission slip that costs more than the asset itself.