Bank of England Eases Stablecoin Rules, Replaces Holding Caps With £40 Billion Issuance Limit
Summary
- The Bank of England has reportedly eased its stablecoin rules by applying initial issuance caps instead of limits on holdings.
- It said the initial total issuance of each stablecoin would be capped at 40 billion pounds, while eligible reserve asset requirements were also eased in part.
- The move lowers barriers to stablecoin adoption and reflects a more practical regulatory approach to pound-denominated stablecoins.
Forecast Trend Report by Period
The Bank of England has reportedly eased parts of its stablecoin regulatory framework. Instead of imposing limits on how much individuals and companies can hold, it has shifted to setting an initial issuance cap for each stablecoin.
Crypto-focused media outlet BlockBeats reported on June 22 that the Bank of England withdrew its earlier proposal to cap individual and corporate holdings. It instead adopted a plan to limit the initial total issuance of each stablecoin to less than 40 billion pounds.
Requirements for eligible reserve assets were also eased in part following industry feedback. The change is being interpreted as lowering a key barrier to stablecoin adoption.
Markets view the shift as a more practical regulatory approach to pound-denominated stablecoins.
Final rules must still be completed before year-end, and safeguards aimed at preventing systemic risk will remain in place. The report said there has been no clear reaction in prices or trading volumes so far.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
