BlackRock push back on 20% tokenized reserve cap under GENIUS Act
BlackRock don submit formal comment letter give US Office of the Comptroller of the Currency (OCC) wey dey oppose proposed 20% tokenized reserve cap for stablecoin reserves under the GENIUS Act. OCC propose the 20% tokenized reserve cap as one option wey go limit how much stablecoin reserves fit dey held for tokenized form. BlackRock talk say reserve risk suppose dey assessed by credit quality, liquidity, and maturity (including interest-rate and price risk), no be by fixed percentage or whether assets don tokenize. For 17-page filing (OCC docket OCC-2025-0372), BlackRock also highlight their BUIDL fund (about $2.6B as of May 2026). Dem claim say BUIDL hold roughly 90%+ of the reserves wey back Ethena’s USDtb and over 90% backing Jupiter’s JupUSD for Solana. BlackRock warn say if dem put hard limit on tokenized reserves e fit force issuers to replace BUIDL with other reserve asset types so dem fit remain compliant. Other market participants too file comments, including Anchorage Digital and trade groups. No final GENIUS rule don come out yet, so market impact depend on how OCC finally treat tokenized reserve eligibility and caps.
Neutral
Neutral: Di rule still de for comment and proposal stage, so no immediate surety about the final wording. But the focus on a 20% tokenized reserve cap dey target directly how much issuers fit rely on tokenized Treasuries like BUIDL. If OCC tighten or keep the cap, issuers fit need to rotate into non-tokenized or alternative eligible reserves, wey fit temporarily cool down demand narratives around tokenized Treasury exposure. That one said, BlackRock’s argument show say regulators fit adjust toward risk-based eligibility instead of one hard percentage, wey go limit downside. Net effect on any single coin price likely indirect and delayed, depending on whether USDtb/JupUSD reserve structures must change and how fast markets price the regulatory outcome—so na neutral bias.