(Updated with comments from Katie Harries, Head of Policy, Europe & Americas at Coinbase)
The Bank of England is considering less conservative restrictions on stablecoins amid industry concerns about its current plans, Sarah Breeden, the Bank's deputy governor for financial stability, told the Financial Times.
The current proposals put temporary caps of £20,000 ($27,000) on individual stablecoin holdings and £10mn on businesses. They also require holders to deposit at least 40% of the value of their stablecoin holdings in central bank assets, earning no interest, with the remainder invested in sovereign bonds and liquid assets.
When Breedon announced the regulatory framework in Nov 2025, she stressed that the aim was to determine that stablecoins no longer pose a threat to the banking system or mortgage funding.
The new rules, expected to take effect by late 2026, form part of a broader joint effort by the Treasury and the Financial Conduct Authority (FCA) to give the City of London a foothold in the post-MiCA race for regulatory relevance.
Breedon said that industry feedback suggested the limits would be "cumbersome operationally for a temporary measure", amid concerns that the UK approach was too cautious, simply following the US lead.
She added that the Bank is therefore reviewing the limits, though without committing to any specific numbers at this stage or to any date for the publication of new proposals.
Katie Harries, Head of Policy, Europe & Americas at Coinbase, told Sandmark: "These are important signals from the Bank of England that it is prepared to revisit its stablecoin proposals. We’ve said for a long time that a cap on stablecoin holdings is a cap on innovation, with real and significant risks for UK competitiveness.
These are real issues that people care about; Stand with Crypto in the UK – a grassroots crypto organization with more than a quarter of a million advocates – launched a petition last year, and had 85,000 people sign it, calling for the UK to lead on stablecoin innovation. This is a remarkable indication of public sentiment.
The Deputy Governor said that the Bank wants to create a regime where stablecoins can succeed and ‘deliver benefits to the users’. This is exactly the right ambition, and what the crypto asset industry and every day people are asking for."
