The Block: BlackRock urges OCC to lift the 20% tokenized reserve cap to support the development of RWA products like BUIDL and others

According to The Block, asset management giant BlackRock submitted a comment letter to the U.S. Office of the Comptroller of the Currency (OCC), urging it to relax the draft restrictions on stablecoin reserve assets under the “Guidance and Establishment of the U.S. Stablecoin National Innovation Act.” BlackRock strongly opposes the OCC’s proposed rule that sets a 20% cap on tokenized reserve assets, emphasizing that asset risk depends on credit quality and liquidity—not on whether the assets are based on distributed ledger technology. It is reported that if this cap is implemented, it would severely limit the development of tokenized government debt products such as BlackRock’s BUIDL Fund (currently providing over 90% reserve backing for Ethena’s USDtb and Jupiter’s JupUSD).

In addition, BlackRock asked the OCC to explicitly confirm that U.S. Treasury bond ETFs meet statutory reserve requirements and suggested including U.S. Treasury floating-rate notes with remaining maturities of no more than two years in the list of eligible reserve assets.