Bank of England softens stablecoin rules in final framework
The central bank dropped individual holding limits and set a temporary £40 billion cap as it tries to support innovation without weakening bank credit.
- 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.
53 Articles
53 Articles
BOE Sets £40 Billion Cap Per Stablecoin and Drops Holding Limit
The Bank of England has scrapped plans to limit how much firms and households can hold in UK stablecoins and instead introduced a temporary £40 billion ($52.8 billion) cap for the total issuance of each coin.
Cointelegraph
The New York LedgerBank of England Publishes Stablecoin Rules, Targets 2027 Launch
The Bank of England unveiled draft stablecoin rules that ease reserve requirements and replace proposed holding limits as the UK prepares for a 2027 launch.
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.
Stablecoin news: Bank of England Sets £40B Issuance Limit for Issuers
Key Insights: Stablecoin news: Bank of England removed planned holding caps for individuals and businesses under its stablecoin rules. Each systemic stablecoin will face an initial £40 billion temporary issuance guardrail in the UK. Stablecoin issuers can hold up to 70% of backing assets in short-term UK government debt. Stablecoin news took a new turn after the Bank of England released rules for systemic issuers. The central bank set a tempora…
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