BlackRock has filed a comment letter with the U.S. Office of the Comptroller of the Currency, backing the agency’s proposed regulatory framework for payment stablecoin issuers under the GENIUS Act.
The world’s largest asset manager submitted seven recommendations, urging the OCC to permit broader reserve eligibility and adopt flexible compliance rules. BlackRock said the GENIUS Act framework can support real-time settlement and stronger payment system standards.
BlackRock Backs Principles-Based Framework
The OCC proposal, published on March 2, sets requirements for permitted payment stablecoin issuers (PPSIs) under the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. It addresses reserve assets, diversification, concentration, capital, and supervisory standards.
BlackRock said it prefers the agency’s “Option A,” which pairs a principles-based approach with an optional quantitative safe harbor. That harbor carries 10% daily and 30% weekly liquidity thresholds, a 40% concentration limit, and a 20-day weighted average maturity cap.
The firm wants same-day settling government money market funds (GMMFs) counted toward the weekly liquidity floor, citing more than $6.2 trillion held in such funds. It also asked the OCC to confirm that qualifying ETFs receive equal treatment. Robert Mitchnick, BlackRock’s Head of Digital Assets, was among five executives who signed the letter.
“With the right regulatory framework in place, stablecoins can improve the payments system and drive new forms of financial utility, including real-time settlement.”
BlackRock, X
Push to Drop 20% Cap on Tokenized Reserves
BlackRock urged the OCC not to impose extra quantitative limits on tokenized forms of eligible reserves. The proposal had floated a 20% cap on tokenized assets, which the firm argues penalizes form over substance rather than risk.
The asset manager also wants U.S. Treasury Floating Rate Notes (FRNs) with up to two-year maturities added as eligible reserves. It called for separately managed accounts to remain available for professional reserve management. CEO Larry Fink has previously framed tokenization as a fresh asset class for institutional portfolios.
The framework arrives as stablecoins move further into mainstream payments use, even as BlackRock’s spot Bitcoin ETF flows have shown signs of cooling this quarter.
The comment period gives U.S. regulators a first chance to align stablecoin policy with institutional reserve standards. BlackRock’s letter signals where major asset managers want the line drawn before final rules take effect.
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