The Bank of England may relax proposed caps on corporate stablecoin holdings after industry backlash, as the UK races to stay competitive in the $314 billion market.
The Bank of England (BOE) appears to be softening its stance on proposed limits to corporate stablecoin holdings, with plans to introduce exemptions for certain firms that may need to maintain larger reserves of fiat-pegged assets, according to a Bloomberg report published Tuesday.
Citing people familiar with the discussions, Bloomberg reported that the BOE’s reconsideration comes amid intense industry backlash and growing international competition, particularly from the United States, which is moving toward clearer regulation through the GENIUS Act, which was signed into law in July.
The BOE had initially proposed caps on stablecoin holdings — 20,000 pounds (about $27,000) for individuals and 10 million pounds for companies — citing concerns over systemic risks posed by widely used tokens such as USDt (USDT) and USDC (USDC).
