Bank of England eases stablecoin rules, sets 40 billion pound issuance cap

The Bank of England published draft rules for systemic stablecoins, raising the reserve threshold for government debt to 70% and replacing individual holding limits with a temporary 40 billion pound issuance cap. Final rulebook expected by end of 2026, rollout in 2027.

• Systemic stablecoin issuers can hold up to 70% of reserves in interest-bearing government debt, up from 60%
• Individual holding limits scrapped and replaced with a temporary 40 billion pound ($52.8B) issuance cap per stablecoin
• The UK is the only country capping issuance of stablecoins in its own currency, per Coinbase's head of EU policy
• Bank of England aims to finalize the rulebook by end of 2026 with a planned 2027 rollout

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