BlackRock submits a comment letter to the U.S. Office of the Comptroller of the Currency, urging it to abandon the idea of setting a quantitative tokenized reserve cap.

ME News Report, May 3rd (UTC+8), ME News Report, May 3rd (UTC+8), BlackRock submitted a comment letter to the U.S. Office of the Comptroller of the Currency (OCC), opposing several reserve asset restrictions proposed in the draft implementing rules of the GENIUS Act. BlackRock urged the OCC not to set quantitative limits on tokenized reserve assets, which the agency previously suggested could be as high as 20%. BlackRock stated that such restrictions are “unrelated” to the OCC’s goals and argued that risk profiles depend on credit quality, duration, and liquidity, “rather than whether assets are held or transferred on a distributed ledger.” BlackRock also urged the OCC to clarify whether ETFs investing solely in qualified reserve assets (such as government bond ETFs) qualify for reserve status under Section 4 of the GENIUS Act. The company warned that ambiguities in the proposal could hinder public sector investment institutions (PPSIs) from holding ETFs in their reserves and called for the OCC to extend the same quantitative safe harbor provisions applicable to government money market funds to qualifying ETFs. (Source: PANews)