Bank of England Eases Stablecoin Regulations, Cancels Individual Holding Caps and Sets £40 Billion Issuance Limit

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

Additionally, 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 required to be held in non-interest-bearing central bank deposits. The public consultation will remain open until September 22, with rules expected to be finalized by the end of 2026, and regulated stablecoins are planned to begin operations in the UK in 2027. (decrypt)