THIS IS BIG for the Ripple ecosystem 🔥 🇬🇧 Bank of England just dropped restrictive holding limits → replaced with a £40 BILLION cap per stablecoin. Clear boost for $RLUSD in the UK. 🇺🇸 Meanwhile, FedNow contributor Jess Cheng (ex-Ripple) explains in video exactly how banks will use $XRP as the bridge for cross-border settlement. Tokenised money + instant liquidity = game on. #XRP

The U.S. housing bill is moving forward: it includes a temporary ban on implementing a CBDC until 2030. Lawmakers claim the measure aims to protect financial stability and privacy. #bitcoin #cryptocurrency

The Next Step in Stablecoin Regulation Is in the United Kingdom The Bank of England has published draft rules for sterling-denominated systemic stablecoins. Previously proposed per-person holding limits have been removed, replaced instead with a temporary issuance cap of £40 billion per stablecoin. The framework covers tokens widely used in payments that could threaten financial stability if they fail. The framework also includes concrete obligations: issuers are permitted to hold 70% of their reserves in short-term government bonds, while the remaining 30% must be held as non-interest-bearing deposits at the central bank. Paying interest to stablecoin holders is prohibited, but usage-based rewards such as spending and transfers are allowed. The timing of this move is notable. Following steps taken by the United States with the GENIUS Act and the European Union with its MiCA framework, the United Kingdom is now establishing its own stablecoin regime. Initial industry assessments have viewed the framework as robust, though the extent to which the issuance cap is truly “temporary” remains an open question. The rules are expected to be finalized by the end of 2026, with issuers anticipated to begin operations in 2027.

The Bank of England has abandoned individual holding limits for stablecoins, instead implementing a £40 billion issuance cap per stablecoin. This appears to be a concession, but in reality, it shifts regulatory focus from the user side to the issuer side—determining who can issue, how much they can issue, and what assets back the stablecoin has become central. Previously, individual holding limits were seen as direct barriers to stablecoin adoption. Removing this barrier now opens the door to retail use cases for GBP-backed stablecoins. However, the £40 billion cap is not low—it equates to roughly one-third of USDT’s current market capitalization, sufficient to accommodate multiple major issuers. More critically, reserve asset requirements have been slightly relaxed. This reduces issuance costs but also tests the central bank’s risk tolerance. If the quality of reserve assets declines, systemic risk does not disappear simply because of the cap. The market has not yet reacted significantly, but structural changes often precede price movements. The Bank of England’s pragmatic approach may accelerate the deployment of GBP stablecoins, particularly in alignment with its 2027 target timeline. For regulators in other jurisdictions, this represents a noteworthy case study—balancing innovation with the imperative to maintain systemic stability. The risk lies in the possibility that issuance caps could be breached or reserve management could falter, once again undermining trust in stablecoins. After all, history has shown that confidence is far harder to restore than rules. $USDT #Stablecoin #Regulation #Blockchain #CryptoMarket

The Bank of England is relaxing rules for systemic stablecoin issuers, reducing the share of reserves required in unremunerated central bank deposits from 40% to 30%, and removing individual and institutional holding limits. The new Code of Practice takes effect in 2027.

JUST IN: BANK OF ENGLAND SOFTENS STABLECOIN RULES The Bank of England has dropped plans to cap individual stablecoin holdings and will instead impose a total issuance limit per stablecoin, initially set at £40 billion. The central bank also eased some reserve asset requirements and aims to finalize its stablecoin framework by the end of 2026.

Bank Of England Drops Stablecoin Holding Caps The Bank of England has published its final policy framework for systemic stablecoins, introducing a £40 billion total issuance limit per stablecoin. Individual holding caps, which drew industry pushback, have been dropped entirely. Reserve backing requirements have also been slightly relaxed. The central bank aims to have full rules in place before the end of 2026.