Bank of England Reconsiders Stablecoin Limits
The BoE is rethinking its planned restrictions on stablecoins after pushback from the crypto $BTC industry. Deputy Governor Sarah Breeden told the Financial Times that previous proposals may have been “too conservative” and the regulator is exploring alternative risk management approaches. Key updates under review:
Previous limits were £20k per individual token for retail users, £10M for companies - could be removed. The initial 40% of stablecoin reserves to be held at the BoE (without interest) may be eased.
The regulator cited operational complexity and industry concerns that strict rules could make UK stablecoins less profitable, potentially weakening the UK’s global crypto position.
For context: The UK first rolled out its stablecoin rules in Nov 2025, allowing some exemptions from limits, but ongoing feedback is shaping updates.
This could mark a major step toward more practical stablecoin regulations in the UK, with potential ripple effects for adoption and institutional engagement.