BlackRock Signals OCC Tokenized Reserve Cap Would Threaten BUIDL Growth
BlackRock filed a 17-page remark letter asking the Office of the Comptroller of the Currency (OCC) to scrap a proposed 20% cap on tokenized reserve property in its draft guidelines for the GENIUS Act.
The world’s largest asset supervisor submitted the submitting on the ultimate day of the company’s 60-day remark window, which opened when the OCC’s proposal was revealed within the Federal Register on March 2.
Why a Tokenized Reserve Cap Threatens BUIDL
BlackRock referred to as the proposed cap “extraneous” to the company’s goals in its letter, filed within the public docket.
The agency argued that reserve threat will depend on credit score high quality, period, and liquidity. It doesn’t matter whether or not an asset strikes on a distributed ledger.
That place carries industrial weight. The agency’s BUIDL fund holds nearly $2.6 billion in assets, in keeping with RWA.xyz information.
It provides greater than 90% of the reserves behind Ethena’s USDtb and Jupiter’s JupUSD on Solana.
“[The limit is] extraneous [to the OCC’s objectives…risk profiles are driven by credit quality, duration, and liquidity]…not whether or not the asset is held or transferred on a distributed ledger,” read an excerpt within the remark letter.
A 20% ceiling would prohibit how aggressively BUIDL can scale inside permitted fee stablecoin issuer reserves.
Circle’s USYC presently leads the tokenized field with $2.9 billion in property underneath administration.
Other Asks within the Letter
The agency pressed the OCC to verify that ETFs qualify as reserves under Section 4 of the law. The remedy would lengthen to Treasury ETFs invested solely in eligible property.
It additionally urged the company so as to add two-year US Treasury floating-rate notes to the eligible asset record. The notes carry weekly coupon resets and restricted worth volatility.
Roland Villacorta and Benjamin Tecmire signed the letter on behalf of BlackRock. The Brookings Institution filed individually Friday, urging greater capital costs on uninsured deposits held as reserves.
The 376-page proposal sits alongside parallel rulemakings from the FDIC, Treasury, FinCEN, and OFAC. All face a January 2027 compliance deadline.
How the OCC handles tokenization will form how rapidly BUIDL turns into a fixture in bank-issued stablecoin reserves.
The submit BlackRock Signals OCC Tokenized Reserve Cap Would Threaten BUIDL Growth appeared first on BeInCrypto.
