Bank of England Eases Stablecoin Rules, Drops Holding Caps for GBP 40B Limit

The Bank of England published final stablecoin rules, scrapping individual holding caps and replacing them with a GBP 40 billion per-coin issuance limit, while letting issuers hold more reserves in government debt.

• The BoE dropped proposed caps on how much stablecoin any one person can hold, replacing them with a GBP 40 billion issuance limit per coin.
• Issuers can now hold up to 70% of reserves in UK government debt (up from 60%), addressing industry complaints about unproductive capital.
• The rules cover only 'systemic' stablecoins used widely in payments; crypto-trading tokens remain under FCA supervision.
• The central bank softened its stance after months of industry lobbying, with a deputy governor admitting earlier proposals were 'overly conservative.'

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