The Bank of England's proposed cap on stablecoin holdings is facing significant opposition from the crypto industry, with concerns that it could hinder business operations and drive talent offshore. The proposal, outlined in a November 2025 consultation paper, suggests temporary limits of £20,000 per individual and £10 million per business on sterling-denominated systemic stablecoins. Critics argue these restrictions could stifle payments and business growth, particularly for mid-sized firms. Industry leaders, including Coinbase CEO Brian Armstrong and Aave founder Stani Kulechov, have labeled the caps as "innovation blockers" and "poison pills" for the UK's financial sector. The Bank of England aims to prevent deposit flight from traditional banks, but experts warn that the caps could reduce demand for UK government bonds and make the UK less attractive for stablecoin issuers. In response to the backlash, Deputy Governor Sarah Breeden indicated the central bank is open to alternative risk management strategies, with updated draft rules expected in June.