The Bank of England relaxes stablecoin regulations, scrapping individual holding limits and proposing a £40 billion total issuance cap per stablecoin.
The Bank of England unveiled its final policy framework for systemic stablecoins, easing several earlier proposals. The central bank abandoned plans to cap individual stablecoin holdings, opting instead for a £40 billion total issuance limit per stablecoin. Reserve backing requirements were also slightly relaxed.
The draft rules follow last year’s consultation, where stricter measures were initially considered. The BoE aims to finalize the regulations by the end of 2026, signaling a more flexible approach to digital asset oversight.
No immediate market reaction was reported following the announcement.