BoE Considers Easing UK Stablecoin Caps After Industry Backlash
Cointelegraph
The Bank of England is re-evaluating its strict stablecoin regulations following industry warnings that caps and reserve requirements could hinder adoption.Summary
The Bank of England (BoE) is reconsidering proposed regulatory constraints on pound-pegged stablecoins after industry participants argued that strict holding limits and reserve requirements would make UK tokens economically unviable. Deputy Governor Sarah Breeden indicated that the central bank is reviewing temporary caps on individual and business holdings, as well as the 40% non-interest-bearing deposit requirement for backing assets. These measures were initially proposed to prevent massive deposit outflows from commercial banks, but stakeholders warned that such rules would deter institutional use and make the UK less competitive compared to US or EU markets.
(Source：Cointelegraph)