The Bank of England hints at possibly easing restrictions on stablecoin holdings

ZkProver · 2026-03-12T00:16:27+00:00

Deputy Governor of the Bank of England Sarah Breeden hinted that regulators might relax the strict limits on stablecoin holdings, as previous proposals faced strong opposition from the industry. The central bank is reviewing feedback and considering other ways to protect the economy, with final regulations to be determined by the end of the year.

ZkProver

2026-03-12 00:16:27

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ChainCatcher reports that, according to Bloomberg, Bank of England Deputy Governor Sarah Breeden hinted that regulators might soften their strict stance on holding limits for stablecoins, which had previously sparked strong opposition from the digital asset industry.

Last year, the central bank proposed setting temporary holding limits of £20,000 for individuals and £10 million for businesses on stablecoins deemed systemically important, to prevent risks from sudden customer deposit transfers from banks to stablecoins. However, stablecoin issuers and the crypto industry warned that these limits would be difficult to enforce and could stifle innovation. Breeden stated during a House of Lords committee hearing that the Bank is open to “other ways” to achieve the goal of protecting the UK economy and is reviewing feedback received on the consultation paper from November last year.

She acknowledged technical challenges in implementing the limits, including how to effectively track token holders and holdings in secondary market transactions, as well as the cost-effectiveness of building systems for temporary restrictions. The Bank plans to finalize the regulations by the end of the year.

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