Bank of England backs down on strict stablecoin holding limits, sets $50 billion issuance cap
The Bank of England has abandoned strict individual and corporate holding limits for stablecoins, replacing them with a £40 billion systemic issuance cap. The move aims to maintain the UK's competitiveness in the crypto sector while allowing issuers to utilize yield-generating government debt.
Why it matters
This represents a significant regulatory pivot that balances financial stability with the need to foster innovation in the digital asset market.
The central bank said it will abandon its plans to impose a £20,000 ($27,000) holding limit on individuals and a £10 million limit on corporations, in a statement on Monday, Instead, the BOE is pivoting to a macro-level "temporary issuance guardrail," capping the total circulation of any single systemic stablecoin at £40 billion ($50.6 billion).
The article objectively reports on regulatory changes and industry reactions without taking a side on crypto policy.
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