UK Central Bank Eases Stablecoin Regulations, Lifting Individual Holding Caps and Setting a £40 Billion Issuance Limit

Odaily Planet Daily News The Bank of England released its final policy statement and draft rules on systemic stablecoins on Monday, easing several previously proposed regulations. The central bank has canceled the originally planned cap on individual holdings, instead setting a temporary issuance limit for each stablecoin, with an initial amount of £40 billion (approximately $52.8 million).

Furthermore, the Bank of England will allow issuers to hold up to 70% of reserve assets in short-term UK government bonds, an increase from the previously proposed 60%, with the remainder to be deposited in non-interest-bearing accounts at the central bank. Public comments are open until September 22, and the rules are expected to be finalized by the end of 2026, with regulated stablecoins planned to begin operations in the UK in 2027. (decrypt)