The Bank of England is reconsidering parts of its stablecoin rulebook after industry groups pushed back it.
The Bank of England is taking another look at its proposed stablecoin rules after industry groups pushed back against parts of the plan, including limits on holdings and a reserve requirement for issuers.
Sarah Breeden, a Bank of England deputy governor, told the Financial Times that the central bank was “looking very hard” at alternatives to the proposal.
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Under the proposed draft guidelines, stablecoin issuers would have to hold 40% of the underlying asset value as non-interest-bearing deposits with the Bank of England. There was also talk about temporary restrictions on holdings at £20,000 for individuals and £10 million for firms.
“What we have heard from industry is that the way we have proposed to implement limits is cumbersome operationally for a temporary measure,” Breeden told the FT. She added:
“So we are genuinely open to thinking whether there are other ways of achieving our objective.”
The UK’s stablecoin rulebook is being built by several players at once. The Bank of England would oversee systemic stablecoins, meaning tokens large enough to matter for financial stability.
Meanwhile, the Financial Conduct Authority is working on rules for stablecoin issuance, custody and consumer-facing crypto firms. HM Treasury is setting the broader legal perimeter.
The FCA has also made stablecoin payments one of its priorities for 2026 and opened a sandbox for firms testing UK-issued stablecoins. Revolut, Monee Financial Technologies, ReStabilise and VVTX were selected for the trial, with use cases including payments and crypto trading.
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