A House of Lords committee argues proposed limits of 20,000 GBP for individuals and 10 million pounds for businesses may be premature.
A UK House of Lords committee has called on the Bank of England to reconsider proposed stablecoin holding limits. The central bank suggested caps of 20,000 GBP per individual and 10 million pounds for businesses, alongside requirements for issuers to hold 40% of backing assets in non-interest-bearing central bank deposits.
The committee’s report, published Wednesday, argues that preemptive limits may not be necessary. Instead, it recommends monitoring market growth and imposing restrictions only if financial stability risks become evident. Stablecoins, digital tokens pegged to traditional assets like the pound or dollar, have faced increasing regulatory scrutiny globally.
No immediate market reaction was reported following the committee’s recommendations.