Bank of England softens stablecoin rules in final framework
The central bank dropped individual holding limits and eased reserve rules after industry criticism, while keeping safeguards for financial stability.
- On Monday, the Bank of England published draft rules for systemic stablecoins, replacing proposed individual holding caps with a temporary £40 billion issuance guardrail to encourage adoption.
- BoE Deputy Governor Sarah Breeden signaled the policy shift in May after digital asset firms warned that restrictive holding limits would hinder competitiveness against dollar-backed stablecoin rivals.
- Under the new policy, systemic stablecoin issuers may hold up to 70% of reserves in interest-bearing government debt, increasing from the previously proposed 60% threshold.
- ClearBank CEO Mark Fairless called the shift away from complex holding limits "a positive step," though he cautioned that further progress on backing requirements is needed.
- The Bank aims to finalize the rulebook by the end of 2026 for a planned 2027 rollout, while non-systemic tokens remain under the Financial Conduct Authority's supervision.
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Cointelegraph
The New York LedgerBank of England Publishes Stablecoin Rules, Targets 2027 Launch
The Bank of England published draft rules for systemic stablecoins, easing reserve requirements and replacing holding limits with a temporary 40-billion British pound issuance cap.
Bank of England softens stablecoin rules in final framework
The Bank of England relaxed some of its proposed rules on stablecoins in its final policy and draft rules on Monday, responding to widespread concern they could hinder the development of the nascent sterling-backed market.
The Bank of England (BoE, Central Bank of Great Britain) introduced new requirements for the issuers of stepples. The decision was published on the official website of the agency. Plans to regulate the BC's steakhouses were announced last year. At that time, officials threatened the British with a radical measure of prohibiting the physical person from owning a currency in excess of £20,000. Companies were asked to set a limit of 10 million, reg…
Bank Of England Drops Stablecoin Holding Caps And Sets £40B Issuance Guardrail
The Bank of England has published its final policy framework and draft rules for systemic stablecoins, replacing proposed user holding caps with a temporary £40 billion issuance guardrail for each systemic stablecoin product. The new systemic stablecoin framework marks a major shift from the Bank’s earlier proposal, which would have limited individuals to £20,000 and businesses to £10 million per systemic stablecoin. The BOE now says it will not…
Bank of England Sets £40 Billion Stablecoin Cap as 2027 Launch Nears
The Bank of England just blinked. After months of tight restrictions on retail stablecoin holdings, the central bank has scrapped… Read the original on Bank of England Sets £40 Billion Stablecoin Cap as 2027 Launch Nears. For more crypto news and analysis, visit TheCurrencyAnalytics.com.
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