The Bank of England is set to relax its proposed regulatory restrictions on stablecoins amid pressure from the digital asset industry, according to the Financial Times. Initially, the central bank suggested temporary holding limits for stablecoins in the UK, capping individual holdings at £20,000 per stablecoin and corporate holdings at £10 million. Additionally, it required that at least 40% of stablecoin reserve assets be held interest-free at the central bank. However, Sarah Breeden, Deputy Governor for Financial Stability, indicated that the initial proposals might be "too conservative." The bank is now considering adjustments to balance financial stability risks with the need to foster innovation.