Bank of England Reevaluates Stablecoin Holdings Limits, May Offer Exemptions

The Bank of England is reconsidering its proposed caps on stablecoin holdings by firms following industry pushback. Industry groups are arguing that these limits could hinder innovation and adoption in the UK’s financial system. The BoE now plans to explore potential exemptions for specific companies, signaling a more flexible approach to regulating stablecoins. This shift aligns with the UK’s ambition to remain at the forefront of fintech innovation while ensuring responsible regulation.