Bank of England Eases Stablecoin Rules with £40 Billion Cap
The Bank of England softened its final stablecoin policy, replacing proposed individual holding caps with a £40 billion ($52.8 billion) issuance limit per systemic stablecoin. It raised the allowable share of backing assets in short-term government debt from 60% to 70%, with 30% in non-interest-bearing central bank deposits. The changes follow industry backlash over competitiveness concerns versus EU and US regimes. Feedback is open until September 2026, with final rules expected by end of 2026 and regulated stablecoins operational from 2027.
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UK dilutes stablecoin capital requirement in final crypto rulebook
The UK Financial Conduct Authority (FCA) announced on June 29, 2026, that it would reduce its proposed capital requirement for stablecoin issuers from 2% to 1% of the total value of stablecoins issued, following industry pushback. The final regulatory rulebook aims to create a 'proportionate' regime that allows firms to compete internationally, particularly against crypto-friendly U.S. policies under President Trump. The FCA also eased other proposals, including giving firms more time to return funds to redeeming customers and removing some public disclosure obligations. The new regime will take effect in October 2027. Sterling-denominated stablecoins, a small fraction of the global market, will be supervised by the FCA, while systemic stablecoins fall under stricter Bank of England regulation. Industry response remains mixed, with some noting the 1% requirement is still challenging compared to expected U.S. flat capital rules.
Yahoo FinanceBank of England Publishes Proposed Stablecoin Rules and Framework
The Bank of England has published proposed rules to govern stablecoins in the United Kingdom, establishing a comprehensive framework via a policy statement. The rules allow UK-issued stablecoins to develop as trusted digital money, aiming for faster and cheaper cross-border transactions. Key provisions include a maximum 70% limit on holdings in short-term UK government debt, with the remainder in central bank deposits, and an issuance limit of £40 billion per stablecoin. The Bank of England is collaborating with the Financial Conduct Authority to finalize the regime by the end of 2026, enabling regulated stablecoins to operate in the UK starting in 2027. The policy aligns with global efforts by countries like the US and Canada to oversee stablecoin adoption.
Yahoo FinanceBank of England Publishes Proposed Stablecoin Rules
The Bank of England has published proposed rules to govern stablecoins in the United Kingdom, establishing a regulatory framework for the emerging digital currency sector. The rules, issued as a policy statement, set a maximum limit of 70% of stablecoin reserves to be held in short-term UK government debt, with the remainder in central bank deposits. Additionally, the Bank of England has imposed an issuance limit of £40 billion per stablecoin. The British central bank aims to finalize the regulations by the end of 2026, allowing regulated stablecoins to operate in the UK starting in 2027. The Bank of England and the Financial Conduct Authority are collaborating on the regime. Advocates argue stablecoins enable faster, cheaper, and more flexible financial services, particularly for cross-border transactions. The UK joins several other countries, including the US and Canada, in developing stablecoin oversight guidelines.
Yahoo FinanceBank of England Softens Draft Stablecoin Rules After Industry Concerns
The Bank of England has revised its proposed regulatory framework for sterling-backed stablecoins, responding to industry concerns that the original rules could stifle market development. The central bank dropped a planned cap on individual holdings, replacing it with a £40bn ($52.8bn) limit on total issuance per stablecoin. It also eased reserve asset requirements, allowing issuers to hold up to 70% of backing assets in short-term government debt, up from 60%, with the remainder in non-interest-bearing central bank deposits. Deputy Governor Sarah Breeden called the move a 'major milestone' for innovation and trust in UK payments. The consultation is open until 22 September 2026, with a final Code of Practice expected by year-end. Regulated stablecoins could begin operating in the UK from 2027. The UK's approach contrasts with the EU's broader MiCA framework, which has been in effect since December 2024.
Yahoo FinanceBank of England eases proposed stablecoin rules after industry pushback
The Bank of England has relaxed its draft regulatory framework for sterling-backed stablecoins following industry concerns that original rules would stifle market growth. Key changes include replacing a proposed individual holding cap with a £40bn ($52.8bn) aggregate issuance limit per stablecoin. The central bank also raised the allowable share of reserve assets held in short-term government debt from 60% to 70%, with the remainder in non-interest-bearing central bank deposits. Deputy Governor Sarah Breeden called the framework a 'world leading regime' for trust and innovation. The consultation runs until 22 September 2026, with final rules and a Code of Practice expected by year-end, allowing regulated stablecoin operations in the UK from 2027. The UK approach contrasts with the EU's broader MiCA framework, which took effect in December 2024 and is now under review.
Yahoo FinanceBank of England loosens cryptocurrency rules after Nigel Farage leads backlash
The Bank of England has watered down planned regulations for stablecoins, dropping proposed limits of £20,000 for individuals and £10m for businesses after criticism from Nigel Farage and Reform UK. Instead, the central bank announced a cap of £40bn on the amount a single issuer can release. Stablecoins are digital tokens pegged to fiat currencies like the dollar or pound. Farage had accused the Bank of being governed by 'dinosaur bureaucrats' and of stifling British innovation and competitiveness. The move follows Farage's receipt of a £5m gift from crypto billionaire Christopher Harborne, a major Tether shareholder, which is under investigation by the parliamentary standards watchdog. Deputy Governor Sarah Breeden described the revised regime as a 'world-leading' foundation for innovation and trust in digital payments. Industry body CryptoUK said the change reflects a more practical balance between financial stability and innovation. The regime is expected to take effect next year.
Yahoo FinanceBank of England Eases Stablecoin Rules, Replaces Holding Caps with £40B Issuance Guardrail
The Bank of England has published its final stablecoin policy statement and draft rulebook, significantly easing proposed regulations. The central bank dropped planned caps on how much stablecoin any individual could hold, replacing them with a £40 billion ($52.8 billion) ceiling on total issuance per coin. Reserve requirements were also relaxed: stablecoin issuers can now hold up to 70% of reserves in short-term UK government debt, up from a proposed 60%, with the remainder in non-interest-bearing Bank of England deposits. The changes follow industry complaints that original rules would stifle the UK's nascent sterling-backed stablecoin market and hurt competitiveness against U.S. and European regimes. Deputy Governor Sarah Breeden called the framework a 'world leading regime.' The Bank is taking feedback until September 22, aims to finalize rules by end of 2026, with regulated stablecoins expected in the UK from 2027. The regime covers only 'systemic' stablecoins used widely in payments; other tokens will be supervised by the Financial Conduct Authority.
Yahoo FinanceBank of England Eases Stablecoin Rules, Replaces Individual Caps with £40 Billion Issuance Limit
The Bank of England published its final policy and draft rulebook for stablecoins, dropping earlier proposals to cap individual holdings in favor of a £40 billion ($52.8 billion) limit on total issuance per systemic stablecoin. The central bank also relaxed reserve requirements, allowing issuers to hold up to 70% of reserves in short-term UK government bonds, up from a proposed 60%, with the remainder in non-interest-bearing deposits at the BoE. Deputy Governor Sarah Breeden called the framework a 'world leading regime' emphasizing innovation and trust. The changes follow industry lobbying that original plans were overly conservative and risked harming UK competitiveness against US and EU regimes. The issuance limit is described as a temporary guardrail to protect credit flow, subject to regular review. The regime applies only to systemic stablecoins used widely in payments; other tokens remain under the Financial Conduct Authority's supervision. The BoE is accepting feedback until September 22, with final rules expected by end of 2026 and regulated stablecoins operational from 2027.
Yahoo FinanceBank of England Eases Stablecoin Rules with £40 Billion Cap, Removes Holding Limits
The Bank of England (BoE) has significantly softened its proposed stablecoin regulatory framework, removing earlier controversial plans to cap individual holdings at £20,000 and business holdings at £10 million. Instead, a temporary £40 billion issuance cap per systemic sterling stablecoin will replace holding limits, allowing users and businesses to hold unlimited amounts. The revised rules also increase the reserve allocation for short-term UK government bonds from 60% to 70%, with the remaining 30% held as non-interest-bearing deposits at the BoE. The changes, driven by extensive industry feedback and a petition with over 84,000 signatures, aim to support innovation while safeguarding financial stability. Stablecoin issuers must redeem stablecoins at par within 24 hours. The BoE considers the policy final but will accept feedback until September 22, 2026, with stablecoin launches potentially beginning as early as 2027.
Yahoo FinanceBank of England Drops Stablecoin Holding Caps, Imposes $53 Billion Issuance Limit
The Bank of England has abandoned proposed per-user stablecoin holding caps, replacing them with a temporary £40 billion ($52.9 billion) issuance limit per systemic stablecoin. The change, announced in a draft Code of Practice on June 22, 2026, follows industry backlash and a House of Lords recommendation to align with global norms. Unlike the US and EU, which impose no such limits on domestic-currency stablecoins, the UK now uniquely caps issuance of sterling-denominated coins. Issuers must back stablecoins with 70% short-term UK government debt and 30% central bank deposits, and cannot pay interest. The policy aims to safeguard bank lending while enabling household and business transactions. The Bank expects final code approval by end of 2026, with first issuers launching in 2027. The move is seen as a test for UK tokenization plans and could determine whether sterling stablecoins scale domestically or abroad.
Yahoo FinanceBank of England Drops Stablecoin Holding Caps but Keeps $53 Billion Issuance Limit
The Bank of England has abandoned proposed per-user holding caps for UK stablecoins, replacing them with a temporary £40 billion ($52.9 billion) issuance limit per systemic coin. The November 2025 proposal had limited individuals to £20,000 and businesses to £10 million per coin, which issuers criticized as costly and unenforceable. Following pressure from the House of Lords, the central bank shifted to a single supply ceiling. This makes the UK unique among major economies in capping issuance of its own currency stablecoin, as neither the US GENIUS Act nor EU MiCA rules impose such limits. Issuers must back coins with 70% short-term UK government debt and 30% central bank deposits, cannot pay interest, but may offer payment-linked rewards. The Bank aims to finalize the code by end of 2026, with first issuers expected in 2027. The unresolved question is whether these coins can settle wholesale market trades, which will shape the UK's tokenization plans.
Yahoo FinanceBank of England Eases Stablecoin Rules in Final Policy Draft, Sets 40 Billion Pound Issuance Cap
On June 22, 2026, the Bank of England (BoE) published its final policy draft on stablecoin regulation, softening proposed rules amid industry concerns that earlier drafts could stifle the sterling-backed stablecoin market. The BoE scrapped plans to cap individual holdings, instead limiting total issuance per stablecoin to £40 billion ($52.8 billion). It also increased the allowed proportion of backing assets held in short-term government debt to 70%, up from 60%, with the remainder in non-interest-bearing central bank deposits. The move comes as stablecoins grow rapidly, especially under the crypto-friendly U.S. Trump administration. While some industry figures welcomed the changes, others, including Innovate Finance's Adam Jackson and ClearBank CEO Mark Fairless, argued the regime remains the most cautious globally, hindering UK competitiveness against dollar and euro stablecoins. The BoE said it welcomes feedback until September 22. Coinbase's Europe policy head called the reserve composition workable, and BoE Deputy Governor Sarah Breeden hailed the rules as a milestone for payments innovation.
Yahoo FinanceBank of England softens stablecoin rules in final policy draft
The Bank of England (BoE) on Monday eased its proposed stablecoin rules after widespread industry concern that the initial draft would stifle the development of a sterling-backed stablecoin market. In its final policy draft, the BoE scrapped plans to cap individual stablecoin holdings, instead limiting total issuance per stablecoin to £40 billion ($52.8 billion). It also relaxed backing asset requirements, allowing issuers to invest up to 70% of reserves in short-term government debt, up from the previously proposed 60%, with the remainder held in non-interest-bearing central bank deposits. While industry representatives welcomed the changes, some, like fintech lobby Innovate Finance, said the UK still has the most cautious regime globally, noting that 30% of banking assets earning no income makes the business model less competitive. The BoE said the policy is final but will accept feedback until September 22.
Yahoo FinanceBank of England Eases Stablecoin Rules in Final Policy Draft
The Bank of England (BoE) has softened its proposed stablecoin regulations in a final policy draft, responding to industry concerns that initial rules would stifle the development of a sterling-backed stablecoin market. Key changes include scrapping caps on individual stablecoin holdings and instead limiting total issuance per stablecoin to £40 billion ($52.8 billion). The BoE also raised the permitted share of backing assets held in short-term government debt from 60% to 70%, with the remainder required to be in non-interest-bearing central bank deposits. Industry reactions were mixed: while some praised the adjustments, critics like Innovate Finance and ClearBank argued the regime remains the most conservative globally, making UK stablecoins less commercially viable compared to dollar or euro alternatives. The BoE has invited further feedback until September 22. The policy finalization comes as the EU’s comprehensive MiCA framework has been in force since December 2024 and the US adopts a crypto-friendly stance under the Trump administration.
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