{"id":92662,"date":"2026-05-15T09:01:34","date_gmt":"2026-05-15T09:01:34","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=92662"},"modified":"2026-05-15T09:01:34","modified_gmt":"2026-05-15T09:01:34","slug":"bank-of-england-to-ease-overly-conservative-stablecoin-rules-after-industry-backlash-report","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=92662","title":{"rendered":"Bank Of England To Ease \u2018Overly Conservative\u2019 Stablecoin Rules After Industry Backlash \u2013 Report"},"content":{"rendered":"
\n

The Bank of England (BoE) is set to water down its planned stablecoin rules and is exploring alternative solutions to mitigate potential risks, following pressure from the local crypto industry and multiple lawmakers about the proposed restrictions.<\/p>\n

BoE Calls Stablecoin Plans \u2018Overly Conservative\u2019<\/h2>\n

On Thursday, the Bank of England\u2019s Deputy Governor for financial stability, Sarah Breeden, revealed that the central bank is preparing to ease its controversial regulatory plans for stablecoins.<\/p>\n

In an interview<\/a> with Financial Times (FT), Breeden admitted that the regulator\u2019s proposal may have been \u201coverly conservative\u201d and that the financial regulator was \u201clooking very hard\u201d at potential solutions.<\/p>\n

The BoE proposed a temporary cap on stablecoin ownership in a November consultation paper to \u201cmitigate financial stability risks stemming from large and rapid outflows of deposits from the banking sector.\u201d<\/p>\n

The restriction aimed to set holding limits of \u00a310,000 to \u00a320,000 for individuals and \u00a310 million for businesses, resembling its proposed approach to the digital pound, which also sought to address financial stability risks.<\/p>\n

Additionally, the central bank proposed that systemic stablecoin issuers hold at least 40% of reserves backing the token as unremunerated deposits at the central bank to ensure \u201crobust redemption and public confidence, even under stress.\u201d<\/p>\n

In March, Breeden had already signaled<\/a> openness to reviewing BoE\u2019s proposals during a meeting with the House of Lords Financial Services Regulation Committee. At the time, she recognized the cap\u2019s technical difficulties but argued that they \u201care there to support an orderly transition as the shape of the system changes.\u201d<\/p>\n

Meanwhile, Breeden told FT that the 60:40 asset allocation requirement was \u201cbased on experience of potential liquidity stress,\u201d particularly the size of deposits withdrawn from Silicon Valley Bank in 2023 and other recent crises.<\/p>\n

Central Bank To Rethink Approach<\/h2>\n

Notably, crypto industry and payment groups in the UK strongly criticized<\/a> the financial regulator\u2019s proposal, arguing that it would be detrimental to the pound and put the UK at a disadvantage relative to the US and the European Union (EU).<\/p>\n

Simon Jennings, executive director of the UK Cryptoasset Business Council trade body, said that \u201climits simply don\u2019t work in practice,\u201d explaining that enforcing caps would require a \u201ccostly, complex new system, such as digital IDs or constant co-ordination between wallets.\u201d<\/p>\n

Similarly, a coalition of UK lawmakers opposed<\/a> the BoE\u2019s policies in December, claiming that it could undermine the government\u2019s efforts to position the UK as a leading nation in the digital assets industry.<\/p>\n

According to the Thursday report, Breeden affirmed that \u201cwhat we have heard from industry is that the way we have proposed to implement limits is cumbersome operationally for a temporary measure,\u201d and added that the industry also seems to prefer to hold more interest-earning assets, \u201cas that goes to their bottom line.\u201d<\/p>\n

Now, the central bank is \u201cgenuinely open to thinking whether there are other ways of achieving our objective\u201d of creating a regime in which stablecoins can succeed and deliver benefits to users. \u201cBut it is money and we want to make sure that this new form of money is safe,\u201d she concluded.<\/p>\n

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

The Bank of England (BoE) is set to water down its planned stablecoin rules and is exploring alternative solutions to mitigate potential risks, following pressure from the local crypto industry and multiple lawmakers about the proposed restrictions. BoE Calls Stablecoin Plans \u2018Overly Conservative\u2019 On Thursday, the Bank of England\u2019s Deputy Governor for financial stability, Sarah […]<\/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-92662","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\/92662","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=92662"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/92662\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=92662"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=92662"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=92662"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}