Bank of England Drops Stablecoin Holding Caps, Sets £40B Issuance Guardrail

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The Bank of England published a policy statement and draft Code of Practice that replaces proposed holding limits with a temporary £40 billion issuance guardrail for each systemic sterling stablecoin. The framework applies to sterling stablecoins used widely in payments. USDT and USDC will remain under the sole supervision of the Financial Conduct Authority. The BoE will accept feedback until Sept. 22 and intends to finalize the code by the end of 2026.
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