Bank of England Softens Stablecoin Rules With £40 Billion Issuer Cap

The Bank of England has softened its regulatory approach toward sterling stablecoins. By removing individual holding limits, the regulator has introduced a £40 billion issuer cap and more lenient reserve treatment. These changes follow industry criticism of previous draft rules, which critics argued were too conservative regarding backing and holdings. The revised regime aims to address concerns that the original, tougher restrictions would have made the real-world utility of stablecoins nearly impossible for users.