Bank of England Proposes Limits on Stablecoin Holdings for Individuals and Businesses
The Bank of England’s consultation sets temporary caps on sterling stablecoin holdings, excluding USDC and USDT, marking a step toward controlled integration into the UK financial framework.
On June 10, the Bank of England issued a consultation paper outlining regulations for systemically important sterling-backed stablecoins. The proposal includes temporary holding limits of £20,000 for individuals and £10 million for businesses, with certain operational exemptions. USDC and USDT are excluded from the coverage. The framework focuses on retail payments and wholesale settlement for systemic pound-linked stablecoins, with other stablecoins regulated by the FCA. Final rules are expected in 2026 following a consultation period ending February 10, 2026.
- Stablecoin: A cryptocurrency pegged to a stable asset like fiat currency to reduce volatility.
- Systemic stablecoin: A stablecoin deemed significant enough to impact the wider financial system, subject to stricter regulation.