Payments

Bank of England revises stablecoin rules

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June 22, 2026

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The Bank of England has revised its proposed stablecoin rules after industry pushback that its earlier approach risked putting the U.K. at a competitive disadvantage in digital assets, according to a report by Financial Times.

The central bank will scrap plans to cap individual holdings of U.K. stablecoins and instead introduce a temporary $53.06 billion issuance limit per systemic coin. It also reduced the share of reserves that must be held in non-interest-bearing accounts at the BoE from 40% to 30%.

Crypto firms had argued the original proposals were stricter than expected U.S. regulations, discouraging issuance of sterling-backed stablecoins and undermining the U.K.'s ambitions as a digital asset hub.

"This is a major milestone in delivering greater choice and innovation in U.K. payments," Sarah Breeden, deputy governor for financial stability, Bank of America, told the news outlet.

Katie Harries, head of policy in Europe at Coinbase, told the news outlet that clarity is needed on issuance caps and whether stablecoins can be used in wholesale market settlement.

Under the revised framework, issuers must hold backing assets in a statutory trust, reimburse holders within 24 hours, and maintain separate capital to support wind-downs. Interest payments will be banned, though transaction-based rewards will be allowed.

The BoE is accepting feedback until Sept. 22 and aims to finalize rules by year-end.