The Bank of England (BoE) is reassessing its regulatory framework for pound-denominated stablecoins. Deputy Governor Sarah Breeden announced that the central bank is exploring alternatives to the proposed holding limits for individuals and businesses, and is reviewing the requirement that at least 40% of reserve assets be held at the BoE without earning interest. The digital asset industry has previously warned that stringent restrictions could hinder adoption and reduce the economic competitiveness of UK tokens. The initial proposal, outlined in a November 2025 consultation paper, suggested a personal holding limit of £20,000 and a business limit of approximately $13.5 million.
Bank of England Reconsiders Regulatory Approach to Pound Stablecoins
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