Bank of England Drops Stablecoin User Caps and Sets $53 Billion Issuance Limit

The Bank of England published final policy positions and draft rules for systemic stablecoins, softening previous proposals. The central bank scrapped individual holding caps, replacing them with a temporary £40 billion ($52.9 billion) issuance limit for each systemic stablecoin. Additionally, the BoE will allow issuers to hold a higher proportion of reserves in government debt. These regulatory changes are designed to support growth while maintaining a guardrail for the issuance of systemic stablecoins.