Bank of England eases stablecoin regulatory rules, removes individual holding caps and sets £40 billion issuance limit

Odaily Planet Daily News 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 has scrapped the original plan to set a cap on individual holdings, instead introducing a temporary issuance limit for each stablecoin, with an initial quota 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 to be deposited in non-interest-bearing accounts at the central bank. Public consultation on the rules will remain open until September 22, with final regulations expected to be established by the end of 2026. Regulated stablecoins are planned to begin operations in the UK in 2027. (Decrypt)