The Bank of England has dropped its plan to limit the amount of stablecoins that individuals and businesses can hold. Instead, it set a cap of £40 billion (about $50 billion) on the total issuance of any single systemic stablecoin. Lawmakers and industry leaders had criticized the original limits, saying they would hurt innovation and make the UK less competitive in the global digital asset market.
The original plan would have limited individuals to £20,000 in stablecoins and companies to £10 million. These restrictions have now been removed. The new rules focus on the total size of the stablecoin, not on individual users. Regulators think this gives businesses and consumers more flexibility while still protecting the financial system from sudden shocks.
The Bank of England also relaxed reserve rules for stablecoin issuers. Companies can now invest up to 70% of their reserves in short-term UK government securities, thereby earning income from these holdings. Earlier, regulators had suggested much stricter rules for the placement of reserves.
However, the central bank did not allow stablecoin issuers to pay users interest from these earnings. Instead, companies can offer rewards such as loyalty points or cashback on transactions.
Industry leaders welcomed the new policy, calling it a better balance between stability and innovation. The decision also follows advice from a House of Lords committee, which warned that the earlier rules could hurt stablecoin businesses in the UK.
The new rules are expected to allow regulated stablecoins to launch in the UK starting in 2027, when the country’s wider crypto regulations take effect.
JUST IN: Bank of England Softens Stablecoin Rules, Scraps Individual Holding Caps
The Bank of England has published its final policy framework and draft rules for systemic stablecoins, easing several proposals from last year’s consultation. The central bank scrapped plans to cap… pic.twitter.com/xAZaOgZAJH
— Wu Blockchain (@WuBlockchain) June 22, 2026
Source: Bank Of England
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