As tensions over cryptocurrency in the United States continue to escalate, the Federal Reserve is preparing to penalize banks that hold Bitcoin. The next major Bitcoin policy battle may not involve ETFs or government legislation, but rather a dry and tedious capital proposal from the Federal Reserve that most investors likely wouldn't read at all. The situation is straightforward: will large banks continue to view Bitcoin as a balance sheet risk, or will U.S. capital rules begin allowing banks to engage more actively in Bitcoin trading? The Federal Reserve is expected to vote next week on a revised Basel Accord proposal and launch a 90-day public comment period. This little-known rulemaking could become one of the most significant banking decisions affecting Bitcoin in recent years. According to Reuters on March 12, 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 Federal Reserve's Vice Chair for Supervision, stated that day 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 will ultimately be able to provide better Bitcoin services, whether crypto companies can more easily establish partnerships with banks, and whether Wall Street integration will extend beyond ETFs. The current Basel Accord framework is highly restrictive, making it difficult for banks to answer these questions. Meanwhile, tensions between the U.S. cryptocurrency industry and banks are intensifying, with ongoing conflicts over the stalled Clarity Act. This month, the President took a clear position, directly blaming banks for delaying the passage of the legislation.