- The BoE may ease planned stablecoin limits.
- Industry groups warned the rules could hurt UK crypto growth.
- The UK still wants financial stability safeguards.
The Bank of England is reportedly preparing to soften parts of its planned stablecoin restrictions after strong pushback from the crypto and fintech industry.
According to the Financial Times, the central bank is looking again at proposals that would place limits on how much stablecoin individuals and businesses can hold. Earlier plans included possible caps of £10,000 to £20,000 for individuals and £10 million for businesses.
The Bank of England stablecoin rules were designed to protect financial stability. Officials have been concerned that large amounts of money could move quickly from bank deposits into stablecoins, creating pressure on traditional lenders.
Industry Pushback Changes the Debate
Crypto firms and payment companies argued that strict caps could make stablecoins difficult to use in real-world payments. They also warned that tough rules could weaken the UK’s goal of becoming a leading digital asset hub.
Another concern was the proposed reserve model. The BoE had discussed requirements for systemic stablecoin issuers to keep a large share of reserves at the central bank, which may reduce business incentives for issuers.
Deputy Governor Sarah Breeden has now indicated that the Bank is exploring alternative ways to meet its goals without creating unnecessary operational problems. Reuters also reported that the BoE is reviewing options after industry feedback.
UK Crypto Regulation Enters a Key Phase
The possible shift does not mean the Bank of England is abandoning caution. Instead, it suggests regulators may try to balance innovation with safety.
For the crypto market, softer Bank of England stablecoin rules could be a positive sign. Stablecoins are widely used for trading, payments, and settlement. Clearer and more practical rules may help companies build services in the UK rather than move elsewhere.
Still, final rules will matter. If limits remain too tight, stablecoin adoption could stay slow. But if the BoE finds a more flexible approach, the UK may strengthen its position in digital finance while keeping risks under control.
