BlackRock is pushing back on new stablecoin rules being shaped by the Office of the Comptroller of the Currency.
The issue is part of the proposed GENIUS Act, which aims to set clear rules for how stablecoins should be backed and managed.
BlackRock’s main concern? A possible 20% cap on tokenized reserve assets.
In simple terms, regulators are considering limiting how much of a stablecoin’s backing can be held in tokenized form (like blockchain-based Treasury products). BlackRock says that doesn’t make sense.
Their argument is straightforward:
It shouldn’t matter how an asset is recorded (on blockchain or not). What matters is:
- How safe it is (credit quality)
- How quickly it can be sold (liquidity)
- How stable it is over time (maturity risk)
So instead of putting a hard cap on tokenized assets, BlackRock wants rules based on actual risk.
They’re also asking regulators to expand what counts as acceptable reserves. For example, they want clarity that Treasury-based exchange-traded funds (ETFs) can be used — as long as they meet safety and liquidity standards.
Right now, the draft rules already allow things like:
- Cash
- U.S. Treasuries
- Short-term government debt
- Repo and reverse repo assets
- Some money market funds
Tokenized versions of these assets are allowed too — but the OCC is still debating whether to limit their share.
This matters more now because tokenized finance is growing fast.
BlackRock’s own product, BUIDL, is already being used in crypto markets. Platforms like OKX now let institutional clients use BUIDL as collateral for trading, with Standard Chartered holding the assets safely off-exchange.
That means institutions can:
- Earn yield from Treasury-backed assets
- While also using them as trading collateral
All at the same time.
So this isn’t just a policy debate — it’s about how the next generation of financial infrastructure will work.
BlackRock’s message is clear:
Don’t limit innovation with arbitrary caps. Focus on risk, not the technology behind the asset.
