Bank of England weighs stablecoin guardrail alternatives ahead of draft rules

The Bank of England said on Tuesday that it is considering alternatives to imposing holding limits on stablecoins and plans to publish draft regulations next month, signalling a possible shift in its approach following criticism from the crypto industry.

Speaking at CityWeek 2026, Deputy Governor Sarah Breeden said temporary guardrails on the total amount of stablecoins issued could help address concerns surrounding the impact on credit provision while reducing costs for the sector compared to holding limits.

The comments come after the central bank previously proposed caps of 20,000 pounds ($26,786) per individual and 10 million pounds per business for sterling stablecoins widely used in everyday payments.

The proposal drew criticism from crypto firms, which argued that the restrictions were among the toughest globally.