BlackRock to OCC: Don’t Cap Our Fun, Let BUIDL Run!

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In a move that can only be described as the financial equivalent of a toddler throwing a tantrum over a cookie limit, BlackRock has filed a 17-page letter begging the Office of the Comptroller of the Currency (OCC) to ditch its proposed 20% cap on tokenized reserve assets. Because, you know, who needs rules when you’re managing billions?

The world’s largest asset manager, in a display of impeccable timing, submitted this plea on the very last day of the OCC’s 60-day comment window. Talk about cutting it close-it’s like they were waiting for the final buzzer in a basketball game, except the stakes are slightly higher than a high school gym class.

Why a Tokenized Reserve Cap is the Party Pooper for BUIDL

BlackRock, with all the drama of a Shakespearean protagonist, called the proposed cap “extraneous.” Because, apparently, the OCC’s objectives don’t include raining on their $2.6 billion BUIDL fund parade. According to them, risk is all about credit quality, duration, and liquidity-not whether the asset is doing the blockchain tango.

And let’s not forget, this isn’t just about BlackRock. Their BUIDL fund is the financial backbone behind Ethena’s USDtb and Jupiter’s JupUSD on Solana, supplying a whopping 90% of the reserves. So, yeah, no pressure.

“[The limit is] extraneous [to the OCC’s objectives…risk profiles are driven by credit quality, duration, and liquidity]…not whether the asset is held or transferred on a distributed ledger,” the letter huffed, presumably while clutching its pearls.

A 20% cap? Oh, the humanity! How ever will BUIDL scale its empire of stablecoin reserves? It’s like telling a kid they can only eat 20% of the candy stash-cruel and unusual punishment.

Meanwhile, Circle’s USYC is sitting pretty with $2.9 billion in assets under management, probably sipping a metaphorical martini while watching the drama unfold.

Other Demands from the Financial Giant

But wait, there’s more! BlackRock didn’t stop at just whining about the cap. They also asked the OCC to confirm that ETFs qualify as reserves under Section 4 of the law. Because, clearly, the world needs more acronyms in finance.

And in a move that screams “we’re not done yet,” they urged the agency to add two-year US Treasury floating-rate notes to the eligible asset list. Because, you know, weekly coupon resets are the spice of life.

The letter was signed by Roland Villacorta and Benjamin Tecmire, who presumably high-fived each other after hitting send. Meanwhile, the Brookings Institution filed its own letter, advocating for higher capital charges on uninsured deposits. Because why not add more fuel to the fire?

All this sits alongside a 376-page proposal from the OCC, with parallel rulemakings from the FDIC, Treasury, FinCEN, and OFAC. And everyone has until January 2027 to comply. So, plenty of time to grab some popcorn and watch the chaos unfold.

How the OCC handles tokenization will determine just how quickly BUIDL becomes a household name in bank-issued stablecoin reserves. Or, you know, just another footnote in the annals of financial regulation. Stay tuned, folks-this is going to be a wild ride.

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2026-05-03 15:57