Bank of England Eases Stablecoin Rules, Scraps Individual Holding Caps

The Bank of England published its final stablecoin rules, easing some of the restrictions it had previously proposed.

Decrypt reported on June 22 that the central bank dropped a proposed cap on individual stablecoin holdings. Instead, it introduced a temporary guardrail that caps total issuance of each stablecoin at 40 billion pounds, or about $53 billion.

The Bank of England also loosened rules on reserve asset management. Under the revised framework, stablecoin issuers can invest as much as 70% of their reserves in interest-bearing government debt, including short-term UK gilts.

That is up from the previous proposal of 60%.