BlackRock Pushes OCC to Ease Stablecoin Reserve Rules Under GENIUS Act

Opposition to Tokenized Asset Cap Gains Attention

BlackRock has urged the Office of the Comptroller of the Currency to reconsider proposed limits on reserve assets tied to stablecoins. In a formal comment letter, the firm opposed a suggested 20% cap on tokenized reserves, arguing that such a restriction is unnecessary and could hinder market development.

The proposal is part of broader rulemaking linked to the GENIUS Act, which outlines how payment stablecoin issuers manage reserves. BlackRock stated that risk should be evaluated based on liquidity, credit quality, and duration, rather than whether assets are tokenized.

BUIDL Fund and Reserve Asset Eligibility Debate

The firm’s position reflects its exposure through the BUIDL fund, which holds nearly $2.6 billion in assets and supports a large share of reserves for stablecoins like USDtb and JupUSD. A strict cap could significantly limit its role in the market.

BlackRock also called for clear recognition of Treasury-based exchange-traded funds as eligible reserve assets, warning that uncertainty may discourage adoption.

Recommendations on Asset Expansion and Flexibility

Beyond opposing limits, BlackRock recommended adding short-term Treasury floating-rate notes to the approved asset list. It also backed a flexible, principles-based framework for reserve diversification rather than rigid requirements, arguing that adaptability will better support stablecoin growth under evolving market conditions.