Bank of England plans stablecoin cap exemptions as UK faces pressure to match US rules: report
The Bank of England plans to introduce exemptions to its proposed limits on corporate stablecoin holdings, signaling a shift in approach as the UK faces mounting pressure to remain competitive with U.S. crypto regulations, according to Bloomberg.Bloomberg reported on Tuesday that the UK central bank plans to issue waivers for certain businesses, including crypto exchanges that need to hold large amounts of stablecoins, and to allow the use of stablecoins as settlement assets within its experimental Digital Securities Sandbox.The BOE's earlier proposals included stablecoin caps of up to £20,000 ($26,832) for individuals and £10 million ($13.4 million) for businesses. The caps are expected to be detailed in a consultation later this year, according to the report.The consideration of potential exemptions follows widespread concerns from the crypto industry over the proposed stablecoin holding limits, alongside criticism that the UK risks falling behind markets like the U.S., which recently passed the Trump administration's GENIUS Act establishing rules for dollar-backed stablecoins.Bailey recently signaled a softer stance, suggesting stablecoins could coexist with traditional finance. In an opinion piece published last week in the Financial Times, he stated that it would be "wrong" to oppose stablecoins as a matter of principle. "Indeed, I do not hold that view, recognising their potential in driving innovation in payments systems both at home and across borders. Practice matters, however, and it is critical that these stablecoins satisfy the conditions that enable public trust," Bailey wrote.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.