BlackRock Backs GENIUS Act Stablecoin Framework, Pushes 7 Recommendations
BlackRock has filed a remark letter with the U.S. Office of the Comptroller of the Currency, backing the company’s proposed regulatory framework for cost stablecoin issuers underneath the GENIUS Act.
The world’s largest asset supervisor submitted seven suggestions, urging the OCC to allow broader reserve eligibility and undertake versatile compliance guidelines. BlackRock mentioned the GENIUS Act framework can assist real-time settlement and stronger cost system requirements.
BlackRock Backs Principles-Based Framework
The OCC proposal, revealed on March 2, units necessities for permitted cost stablecoin issuers (PPSIs) underneath the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. It addresses reserve belongings, diversification, focus, capital, and supervisory requirements.
BlackRock mentioned it prefers the company’s “Option A,” which pairs a principles-based method with an elective quantitative protected harbor. That harbor carries 10% each day and 30% weekly liquidity thresholds, a 40% focus restrict, and a 20-day weighted common maturity cap.
The agency needs same-day settling authorities cash market funds (GMMFs) counted towards the weekly liquidity flooring, citing greater than $6.2 trillion held in such funds. It additionally requested the OCC to verify that qualifying ETFs obtain equal therapy. Robert Mitchnick, BlackRock’s Head of Digital Assets, was amongst 5 executives who signed the letter.
“With the suitable regulatory framework in place, stablecoins can enhance the funds system and drive new types of monetary utility, together with real-time settlement.”
BlackRock, X
Push to Drop 20% Cap on Tokenized Reserves
BlackRock urged the OCC to not impose further quantitative limits on tokenized types of eligible reserves. The proposal had floated a 20% cap on tokenized belongings, which the agency argues penalizes type over substance slightly than danger.
The asset supervisor additionally needs U.S. Treasury Floating Rate Notes (FRNs) with as much as two-year maturities added as eligible reserves. It referred to as for individually managed accounts to stay accessible for skilled reserve administration. CEO Larry Fink has beforehand framed tokenization as a contemporary asset class for institutional portfolios.
The framework arrives as stablecoins transfer additional into mainstream funds use, whilst BlackRock’s spot Bitcoin (*7*) flows have proven indicators of cooling this quarter.
The remark interval provides U.S. regulators a primary likelihood to align stablecoin coverage with institutional reserve requirements. BlackRock’s letter indicators the place main asset managers need the road drawn earlier than last guidelines take impact.
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