BoE Reconsiders Sterling Stablecoin Caps and Reserve Rules After Industry Pushback

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Bank of England Deputy Governor Sarah Breeden said the central bank is rethinking parts of its sterling stablecoin framework, including a proposed £20,000 cap on individual holdings. The draft rules also require issuers to keep at least 40% of reserves at the BoE without interest, and Breeden said the bank is reviewing whether that design was overly conservative. Under the current proposal, non-sterling stablecoins used mainly for crypto trading, such as USDT and USDC, would remain under Financial Conduct Authority oversight.

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