Bank of England Weighs Easing Stablecoin Rules After Saying Proposal May Have Been Too Conservative
Summary
- The Bank of England signaled it may ease stablecoin regulations.
- It said its earlier proposal to limit stablecoin holding caps for individuals and companies may have been overly conservative.
- Markets are watching whether discussions will move toward easing the existing proposal to reflect industry feedback.
Forecast Trend Report by Period
The Bank of England signaled it may ease its approach to stablecoin regulation.
In an interview with the Financial Times published on May 14, Sarah Breeden, the BOE's deputy governor for financial stability, said the central bank's initial stablecoin proposal may have been too conservative. The BOE is reviewing other ways to manage the risks, she said.
Markets are focused on whether the central bank will soften parts of the existing proposal to reflect industry feedback.
The BOE had previously proposed capping stablecoin holdings at 20,000 pounds ($26,600) per individual and 10 million pounds ($13.3 million) per company, citing concerns including potential deposit outflows from traditional banks.
Breeden said the draft rules were designed conservatively to account for the possibility of a liquidity crisis. The BOE is now reassessing whether that approach was excessively cautious.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
