The Bank of England is scaling back parts of its proposed framework for pound-backed stablecoins after criticism from the crypto industry, according to the Financial Times. The review focuses on strict reserve requirements and ownership caps that firms argued could make sterling-denominated stablecoins harder to use at scale and weaken the United Kingdom’s competitiveness in the digital economy. The shift points to a softer regulatory approach rather than a full reversal, as the central bank balances financial stability concerns with support for innovation in crypto-linked payment instruments. No final revised rules or timeline were provided.