Bank of England Eases Sterling Stablecoin Regulations, Introducing £40 Billion Issuer Cap

Bank of England Eases Sterling Stablecoin Regulations, Introducing £40 Billion Issuer Cap

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The Bank of England has announced a significant relaxation of its regulatory framework for sterling-backed stablecoins. The updated policy replaces previous individual holding limits with a new, more flexible £40 billion cap per issuer. Additionally, the central bank is implementing a looser approach to reserve treatment, indicating a more accommodating stance to facilitate the growth and operation of stablecoins within the UK's financial ecosystem.

Bank of England softens sterling stablecoin rules, dropping individual holding limits for a £40B issuer cap and looser reserve treatment.