Bank Of England Eases Stablecoin Rules For 2026, Scraps Individual Holding Caps
You are here:Home/Industry/Bank of England Eases Stablecoin Rules for 2026, Scraps Individual Holding CapsSystemic stablecoins have been on the UK’s radar for how they ought to be regulated and controlled. . . .
You are here:Home/Industry/Bank of England Eases Stablecoin Rules for 2026, Scraps Individual Holding CapsSystemic stablecoins have been on the UK’s radar for how they ought to be regulated and controlled. The Bank of England (BoE) released its policy structure and draft rules for systemic stablecoins, which are quite different from the ones it considered last year. These changes indicate that UK-based crypto firms and blockchain issuers should expect a move from strict and top-down controls to more risk-based and desired outcomes which will affect stablecoin design, reserve management, and market access. From Individual Caps to Issuance LimitsAfter ditching the plan to limit per-user stablecoin holdings, the Bank of England came up with a fresh proposal for a total issuance limit per stablecoin, the initial figure being 40 billion. The new approach tackles the industry’s argument that if caps were imposed on per-wallet transactions, liquidity would get fragmented, and it would become difficult for institutions to adopt. The bank intends to control systemic risk by focusing on the overall exposure, at the same time not limiting the use of retail or corporate cases across payments and settlement. Also Read:Bank of England Advances UK Stablecoins and Digital Payment RulesBoE Lowered Reserve Backing ThresholdsApart from limiting the amount of issuance, the BoE also, to some extent, loosened the requirements for reserve backing assets. Although the draft regulations continue to require that reserves must be of very high quality and liquid to support redemption at 1:1, there is more leniency than in the draft from last year. BREAKING: The Bank of England has published its final policy framework and draft rules for systemic stablecoins. It scrapped individual holding caps, proposed a £40B issuance limit per stablecoin, and aims to finalize rules by end-2026. pic. twitter. com/U0n9jA9jkb— MSB Intel (@MSBIntel)June 22, 2026In turn, this shift may lessen the hassle of operations for stablecoin issuers while still maintaining the guards against bank runs which have been among the main issues of concern for blockchain-based money and RWA tokenization. Also Read:Bank of England May Ease Sterling Stablecoins Rules Amid ConcernsTimeline and Next StepsThe Bank of England plans to have the rules finalized by the end of 2026 after more discussions. The longer timeline helps give issuers a clear picture, but at the same time, there will be a span of regulatory change. This interim period may also create uncertainty for firms trying to plan product launches or compliance roadmaps. Also Read:Pump. fun’s New Crypto Bounty Feature Under Fire Over Risky StuntsAboutAnanthyka JAnanthyka J is a market reporter at Tronweekly, reporting on cryptocurrency news. She covers cryptocurrency markets, blockchain technology, and digital asset regulation, focusing on Bitcoin, Ethereum, DeFi, altcoins, and crypto policy. Her reporting emphasizes clear and accurate market coverage, including crypto market movements, regulatory developments, and blockchain adoption. She holds a BA in Journalism and Mass Communication and an MA in Communication and Media Studies. She has also completed multiple media internships, follows strict editorial and fact-checking standards, and discloses potential conflicts of interest when reporting. 🔗 Connect on LinkedIn