{"id":76152,"date":"2026-03-13T06:01:32","date_gmt":"2026-03-13T06:01:32","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=76152"},"modified":"2026-03-13T06:01:32","modified_gmt":"2026-03-13T06:01:32","slug":"bank-of-england-open-to-review-stablecoin-ownership-cap-proposal-following-backlash","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=76152","title":{"rendered":"Bank Of England Open To Review Stablecoin Ownership Cap Proposal Following Backlash"},"content":{"rendered":"
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The Bank of England (BoE) has signaled openness to softening its regulatory approach to systemic pound-pegged stablecoins after facing backlash from lawmakers and industry leaders over certain proposed policies.<\/p>\n

BoE To Revise Stablecoin Regulation Proposal<\/h2>\n

On Wednesday, Bank of England Deputy Governor Sarah Breeden affirmed<\/a> that the financial authority was \u201cgenuinely open\u201d to revising its stablecoin proposals, including an ownership cap and a 60:40 split of asset backing, published for public consultation in late 2025.<\/p>\n

For context, the financial regulator has proposed<\/a> to temporarily cap stablecoin ownership to \u201cmitigate financial stability risks stemming from large and rapid outflows of deposits from the banking sector.\u201d<\/p>\n

According to the November consultation paper, the restriction would set limits of \u00a310,000 to \u00a320,000 for individuals and \u00a310 million for businesses, mirroring its proposed approach to the digital pound.<\/p>\n

In addition, the BoE suggested that systemic stablecoin issuers are required to hold at least 40% of reserves backing a stablecoin as unremunerated deposits at the central bank, aiming to ensure \u201crobust redemption and public confidence, even under stress.\u201d<\/p>\n

During a meeting with the House of Lords Financial Services Regulation Committee, Breeden said the BoE remained receptive to alternative approaches that could achieve its financial stability objective without relying on its controversial proposals.<\/p>\n

According to recent reports<\/a>, the central bank \u201cproposed holding limits as a way of managing that risk.\u201d Breeden told the House of Lords Committee that they \u201care open to feedback on other ways of achieving it.\u201d<\/p>\n

She also revealed that the BoE would review whether the 60:40 asset allocation supporting stablecoins is \u201cexcessively conservative.\u201d However, she argued that the structure<\/a> aligns broadly with measures proposed in the United States and has already been adopted in the European Union (EU).<\/p>\n

Industry Pressure Is \u2018Very Real\u2019<\/h2>\n

Breeden reportedly recognized the technical difficulties with imposing the stablecoin caps but defended the central bank\u2019s proposed rules, arguing that the caps \u201care there to support an orderly transition as the shape of the system changes.\u201d<\/p>\n

Benoit Marzouk, CEO of Tokenised GBP, the issuer of one of the few pound-pegged stablecoins currently available, told Bloomberg that there\u2019s a \u201creally small\u201d window to get policy right. \u201cIt could be really damaging for the UK if we had this limit for both retail and companies,\u201d he affirmed, adding, \u201cAs a business, you can\u2019t do anything with \u00a310 million.\u201d<\/p>\n

Meanwhile, Tom Rhodes, CLO at Agant, a company planning to issue a pound-denominated stablecoin, stated that tracking who\u2019s holding the tokens would be \u201ca massive administrative burden\u201d for issuers.<\/p>\n

The Deputy Governor also acknowledged the industry\u2019s backlash, affirming that the pressure is \u201cvery real.\u201d Although she asserted that the central bank has not received yet \u201cthe constructive engagement on a different way to solve the problem that I might have hoped for.\u201d<\/p>\n

\u00a0As reported<\/a> by Bitcoinist, a coalition of UK lawmakers opposed the BoE\u2019s stablecoin policies, which could undermine the government\u2019s efforts to position the UK as a leading nation in the digital assets industry.<\/p>\n

In a letter to Chancellor Rachel Reeves, members of the House of Lords, the House of Commons, and peers argued that the financial regulator\u2019s proposal to cap stablecoin ownership could prevent the UK from fully capitalizing on opportunities, drive innovation offshore, and lead investors to USD-pegged alternatives, while potentially positioning the UK \u201cas a global outlier.\u201d<\/p>\n

Similarly, local crypto industry groups affirmed<\/a> that the stablecoin cap proposal was a \u201cstep in the wrong direction\u201d and urged the Bank of England to scrap it last year.<\/p>\n

Breeden announced that the central bank would release draft rules for public consultation in June. The bank aims to finalize the regulations by the end of the year to align with global regulatory standards.<\/p>\n

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

The Bank of England (BoE) has signaled openness to softening its regulatory approach to systemic pound-pegged stablecoins after facing backlash from lawmakers and industry leaders over certain proposed policies. BoE To Revise Stablecoin Regulation Proposal On Wednesday, Bank of England Deputy Governor Sarah Breeden affirmed that the financial authority was \u201cgenuinely open\u201d to revising its […]<\/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-76152","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\/76152","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=76152"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/76152\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=76152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=76152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=76152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}