Bank of England softens stablecoin rules in final framework
The central bank dropped individual holding limits and eased reserve rules after industry criticism, while keeping safeguards for financial stability.
- On Monday, the Bank of England published draft rules for systemic stablecoins, replacing proposed individual holding caps with a temporary £40 billion issuance guardrail to encourage adoption.
- BoE Deputy Governor Sarah Breeden signaled the policy shift in May after digital asset firms warned that restrictive holding limits would hinder competitiveness against dollar-backed stablecoin rivals.
- Under the new policy, systemic stablecoin issuers may hold up to 70% of reserves in interest-bearing government debt, increasing from the previously proposed 60% threshold.
- ClearBank CEO Mark Fairless called the shift away from complex holding limits "a positive step," though he cautioned that further progress on backing requirements is needed.
- The Bank aims to finalize the rulebook by the end of 2026 for a planned 2027 rollout, while non-systemic tokens remain under the Financial Conduct Authority's supervision.
33 Articles
33 Articles
Cointelegraph
The New York LedgerBank of England Publishes Stablecoin Rules, Targets 2027 Launch
The Bank of England published draft rules for systemic stablecoins, easing reserve requirements and replacing holding limits with a temporary 40-billion British pound issuance cap.
Bank of England softens stablecoin rules in final framework
The Bank of England relaxed some of its proposed rules on stablecoins in its final policy and draft rules on Monday, responding to widespread concern they could hinder the development of the nascent sterling-backed market.
UK Finalizes Stablecoin Framework Ahead of 2027 Regulatory Launch
Key Highlights BoE finalizes regulatory framework for sterling stablecoins targeting 2027 deployment £40 billion temporary ceiling imposed on systemically important tokens Reserve composition permits 70% allocation to UK sovereign debt instruments Individual user holding restrictions removed following industry consultation Joint regulatory oversight model established between BoE and FCA The Bank of England has published a comprehensive regu…
Bank of England drops stablecoin limit
The Bank of England said Monday it was modifying its framework to allow unrestricted use of stablecoins for households and businesses. Stablecoins are a form of digital money whose value is stable in that it is pegged to that of fiat, or classic, money. The central bank said last November it would place limit on […] The post Bank of England drops stablecoin limit appeared first on Insider Paper.
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