The Bank of England scrapped proposals to cap individual stablecoin holdings at £20,000 and corporate holdings at £10 million on June 22, 2026, replacing both with a single £40 billion issuance ceiling per systemic coin. The new limit targets aggregate supply, not individual users.
The reversal removes the main structural obstacle UK stablecoin issuers had flagged. A cross-party House of Lords Financial Services Regulation Committee called on the BOE in June to reconsider limits it said "could have a significant impact on the business viability of stablecoin issuers," according to CoinDesk. The BOE's policy statement acknowledged those concerns and described the ceiling as delivering the same systemic-risk management "while allowing unrestricted use by households and businesses."
On reserves, issuers must back coins with at least 30% in non-interest-bearing central bank deposits and may place up to 70% in short-term UK government gilts maturing within six months, according to CoinDesk and BeInCrypto. The ban on paying interest to holders stays. Activity-based rewards, including cashback tokens and loyalty points tied to payment transactions, remain permitted, per CoinDesk.
The BOE described the £40 billion figure as temporary, to be reviewed regularly and removed once risks to credit provision have been addressed, per the policy statement.
The consultation window closes September 22, 2026. The BOE plans to finalize its Code of Practice by end of 2026, with the first regulated issuers expected in 2027 when the UK's full crypto framework takes effect, according to BeInCrypto.
Sterling stablecoins are a minor fraction of the global market; roughly 99% of stablecoins in circulation are dollar-denominated, according to European Central Bank data cited by BeInCrypto.
