As US cryptocurrency tensions continue to intensify, the Federal Reserve is preparing to penalize banks holding Bitcoin. The next major Bitcoin policy battle may not be about ETFs or government legislation, but rather about a mundane Federal Reserve capital proposal that most investors probably won't read at all. The situation is straightforward: will large banks continue to view Bitcoin as a balance sheet risk, or will US capital rules begin to allow banks to participate more aggressively in Bitcoin trading? The Fed is expected to vote next week on a revised Basel Accord proposal and open a 90-day public comment period. This little-known rulemaking could become one of the most impactful banking decisions on Bitcoin in recent years. Reuters reported on March 12 that the Federal Reserve plans to vote next week on a revised Basel Accord proposal targeting large banks and will open a 90-day public comment period. Michelle Bowman, the Fed's Vice Chair for Supervision, said that the proposal covering Basel III and the Global Systemically Important Banks (G-SIB) surcharge will be released next week. Most cryptocurrency investors don't care about prudential regulatory terminology, but they do care whether banks can ultimately provide better Bitcoin services, whether cryptocurrency companies can more easily establish partnerships with banks, and whether Wall Street's integration will expand beyond ETFs. The current Basel Accord framework is highly restrictive, making it difficult for banks to answer these questions. Meanwhile, tensions between the US cryptocurrency industry and banks are intensifying, with both sides continuing to clash over the stalled Clarity Act. This month, the President took a clear stance, directly blaming banks for delaying the passage of the bill.