Bank of England Open to Alternative Stablecoin Holding Limits

According to Cointelegraph, Sarah Breeden, Deputy Governor of the Bank of England, stated during a hearing before the UK House of Lords Financial Services Regulation Committee that regulators are open to a cap on stablecoin holdings and are willing to consider alternative approaches that achieve the same risk management objectives. Previously, the Bank of England proposed limiting individual stablecoin holdings to between £10,000 and £20,000 (approximately $13,368 to $26,733), aiming to prevent large-scale shifts of bank deposits into stablecoins that could disrupt credit supply. The proposal has faced criticism from multiple industry groups, who argue it would undermine the competitiveness of the UK’s crypto industry and stifle innovation. Breeden also explicitly stated that holding stablecoins in non-custodial wallets would not be permitted under the UK regulatory framework, as such wallets lack regulatory oversight to ensure compliance with anti-money laundering and customer identification requirements—a stance that differs from the current regulatory approach in the United States.