Bank of England Softens Stablecoin Rules With £40B Issuance Cap
22 Jun 2026 · 11:40 UTC · CoinCentral RSS Feed · Original source
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Summary
The Bank of England has relaxed its proposed stablecoin regulations by removing individual and corporate holding limits, and introducing a temporary £40B cap on issuance for systemic stablecoins. Issuers can hold a significant portion of reserves in short-term UK government debt, with regulated stablecoin activity set to commence in 2027.
Why it matters
The decision to soften stablecoin rules indicates a more favorable regulatory stance in the UK, potentially boosting confidence among investors and users. The £40B cap on issuance suggests a controlled approach to stablecoin growth, which could reduce volatility and enhance trust in these digital assets. However, the timeline for implementation (2027) introduces uncertainty, and the market may react cautiously in the short term. The overall impact is likely to be more pronounced over the longer term as the regulatory framework solidifies.
Expected impact
The Bank of England's easing of stablecoin regulations may positively influence the cryptocurrency market, particularly for Bitcoin and altcoins. With a cap on issuance and relaxed holding limits, the stability of regulated stablecoins could encourage broader adoption. This regulatory clarity is expected to create a more conducive environment for investment and innovation in the crypto space, leading to a gradual increase in market sentiment and prices over time.