In a significant move that highlights the increasing integration of stablecoins into the financial ecosystem, BlackRock has expressed its support for the U.S. Office of the Comptroller of the Currency’s (OCC) proposed regulatory framework for payment stablecoin issuers under the GENIUS Act. In its comment letter, the world’s largest asset manager put forth seven recommendations aimed at refining the framework to better meet the needs of the evolving digital asset landscape.
The GENIUS Act, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, was introduced by the OCC to establish a solid regulatory foundation for the burgeoning market of stablecoins. Among the critical areas addressed in the proposal are reserve assets, reserve diversification, concentration limits, capital requirements, and supervisory standards.
BlackRock’s endorsement of the framework is paired with a preference for what it describes as a principles-based approach accompanied by an optional quantitative safe harbor. The proposed safe harbor includes liquidity thresholds—10% for daily and 30% for weekly liquidity—alongside limits on asset concentration and maturity. BlackRock believes that under the right regulatory conditions, stablecoins can significantly enhance the payments system and facilitate innovative financial utilities such as real-time settlement.
The firm has urged the OCC to allow same-day settling government money market funds (GMMFs) to count toward the weekly liquidity requirements, pointing to the substantial $6.2 trillion currently held in these funds. Additionally, BlackRock has requested that qualifying exchange-traded funds (ETFs) receive equal consideration under the stability framework.
Robert Mitchnick, BlackRock’s Head of Digital Assets, was among several executives who endorsed the comments made in the letter. The firm made a specific appeal to the OCC not to impose restrictive quantitative limits on tokenized eligible reserves, as a proposed 20% cap could hinder innovation by prioritizing form over substance in risk management.
Furthermore, BlackRock recommended that U.S. Treasury Floating Rate Notes (FRNs) with maturity periods of up to two years be recognized as eligible reserves to enhance the robustness of stablecoin backing. The firm also stressed the importance of allowing separately managed accounts to remain available for professional reserve management, thus providing institutional investors greater flexibility in managing their assets.
As the stablecoin sector continues to gain traction—especially in the context of mainstream payment use—the timing of BlackRock’s comment is particularly noteworthy. It comes amid evidence that interest in BlackRock’s spot Bitcoin ETF has diminished recently, suggesting that the company is looking to diversify its offerings and bolster its position in the evolving digital asset market.
In summary, BlackRock’s advocacy for the GENIUS Act framework not only indicates its commitment to shaping a conducive regulatory environment for stablecoins but also serves as a crucial signal to U.S. regulators about the desires of major asset management firms as they seek to align stablecoin policies with institutional reserve standards. The outcomes from this comment period hold the potential to significantly influence the landscape of digital assets in the United States going forward.
