Catenaa, Wednesday, May 06, 2026-BlackRock has urged US regulators to ease proposed limits on stablecoin reserve assets, warning that strict caps on tokenized instruments could hinder market development under the new federal framework established by the GENIUS Act.
In a formal comment to the Office of the Comptroller of the Currency, BlackRock opposed a proposed limit that could restrict tokenized reserve assets to around 20%. The firm argued that risk should be assessed based on credit quality, liquidity and duration, not the technology used to hold assets
The position reflects BlackRock’s growing presence in tokenized finance. Its Treasury-focused digital liquidity fund holds billions in assets and supports several stablecoin projects. A strict cap on tokenized reserves could limit the expansion of such products within the regulated system.
BlackRock also asked regulators to clarify that exchange-traded funds backed by eligible assets, such as US Treasurys, can be used as reserves. The firm warned that uncertainty could discourage stablecoin issuers from using ETFs, reducing flexibility in reserve management.
Support for Flexible Compliance Framework
The company backed a principles-based approach to reserve diversification, favoring optional safeguards over mandatory limits. It recommended adjustments to concentration rules and liquidity requirements to better reflect operational realities, including how certain funds are held and settled.
Among its proposals, BlackRock suggested adding Treasury floating-rate notes with up to two years of maturity to the list of approved reserve assets, citing their stability and predictable returns. It also called for a transparent process to evaluate additional assets over time.
Regulatory Timeline Accelerates
The OCC proposal is part of a broader set of federal rulemakings tied to the GENIUS Act, with compliance deadlines set for early 2027. Other agencies, including the Federal Deposit Insurance Corporation and the Treasury Department, are advancing parallel rules covering capital standards, anti-money laundering and sanctions compliance.
BlackRock’s submission was one of several filed before the close of the public comment period. Policy groups have also raised concerns about capital requirements and systemic risks tied to stablecoin reserves, signaling ongoing debate as regulators finalize the framework.
