{"id":47747,"date":"2025-09-16T09:31:34","date_gmt":"2025-09-16T09:31:34","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=47747"},"modified":"2025-09-16T09:31:34","modified_gmt":"2025-09-16T09:31:34","slug":"uk-crypto-groups-criticize-bank-of-englands-proposal-to-cap-stablecoin-ownership-report","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=47747","title":{"rendered":"UK Crypto Groups Criticize Bank Of England\u2019s Proposal To Cap Stablecoin Ownership \u2013 Report"},"content":{"rendered":"
\n

Crypto industry groups have reportedly urged the Bank of England (BoE) to scrap a proposal to limit stablecoin ownership in the UK, arguing that it would be detrimental to the pound and a \u201cstep in the wrong direction.\u201d<\/p>\n

BoE Exploring Stablecoin Ownership Cap<\/h2>\n

On Monday, the Financial Times (FT) reported<\/a> that crypto groups have heavily criticized one of the Bank of England\u2019s proposed policies, which would establish stricter rules for the UK market than the US or the European Union (EU).<\/p>\n

According to the report, the BoE plans to restrict stablecoin ownership in the UK, imposing a limit of \u00a310,000 to \u00a320,000 for individuals and \u00a310 million for businesses on all systemic stablecoins.<\/p>\n

The central bank\u2019s plan would be similar to its proposed approach to the digital pound, which sought to address financial stability risks that deposits could flow out of the banking system.<\/p>\n

\"crypto\"<\/p>\n

\u201cApplying similar holding limits to stablecoins would allow the Bank to learn more about the extent of bank disintermediation associated with their use and the resulting impact on the cost and availability of credit,\u201d the proposal reads.<\/p>\n

In a recent speech, BoE executive director for financial market infrastructure, Sasha Mills, affirmed that the limits would \u201cmitigate financial stability risks stemming from large and rapid outflows of deposits from the banking sector \u2014 for example sudden drops in the provision of credit to businesses and households \u2014 and risks posed by newly recognised systemic payment systems as they are scaling up.\u201d<\/p>\n

However, crypto and payment groups consider that the plan would put the UK at a disadvantage<\/a> and would be difficult and costly for issuers to implement, hampering the potential benefits of stablecoins, such as cheaper and faster cross-border payments.<\/p>\n

\u00a0\u201cLimits simply don\u2019t work in practice,\u201d Simon Jennings, executive director of the UK Cryptoasset Business Council trade body, told the FT. \u201cStablecoin issuers don\u2019t have sight of who holds their tokens at any given time, so enforcing caps would require a costly, complex new system, such as digital IDs or constant co-ordination between wallets,\u201d he added.<\/p>\n

Meanwhile, Tom Duff Gordon, vice-president of international policy at Coinbase, stated that \u201cimposing caps on stablecoins is bad for UK savers, bad for the City and bad for sterling. No other major jurisdiction has deemed it necessary to impose caps.\u201d<\/p>\n

UK Crypto Regulation Falling Behind?<\/h2>\n

The BoE previously said its proposed limits on stablecoin ownership could be \u201ctransitional\u201d while the financial system adjusts to the growth of digital money, the FT noted. Similarly, BoE\u2019s Deputy Governor for Financial Stability, Sarah Breeden, recently affirmed that officials must be open to \u201clearning as we go,\u201d ahead of the Q4 consultation on its crypto policy proposals.<\/p>\n

As reported<\/a> by Bitcoinist, Sarah Breeden affirmed that the BoE must keep up with the global developments as new payment options emerge, sharing her vision for a \u201cmulti-money\u201d system that includes stablecoins and other traditional assets in the UK.<\/p>\n

The central bank governor stated that the UK already set out the necessary legislation for a regulatory regime for stablecoins in 2023, while the BoE and the Financial Conduct Authority (FCA) have been engaging with the industry to develop more detailed rules of that regime throughout this year.<\/p>\n

FT cited recent comments from Gilles Chemla, a professor at Imperial Business School, who warned that the UK is falling<\/a> behind on stablecoin regulation: \u201cLondon has the talent, the markets, and the history to lead the digital economy, but the delay in implementing a regulatory framework for stablecoins is eroding that advantage.\u201d<\/p>\n

\u201cStablecoins are no longer experimental technologies \u2014 they are becoming the foundation of the global digital economy,\u201d Chemla stated.<\/p>\n

\"crypto,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Crypto industry groups have reportedly urged the Bank of England (BoE) to scrap a proposal to limit stablecoin ownership in the UK, arguing that it would be detrimental to the pound and a \u201cstep in the wrong direction.\u201d BoE Exploring Stablecoin Ownership Cap On Monday, the Financial Times (FT) reported that crypto groups have heavily […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-47747","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/47747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=47747"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/47747\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}