How does the UK's stablecoin regulation compare to the US approach?

Industry executives have criticized the UK's holding limits as overly cautious compared to the US regulatory framework under the GENIUS Act, which established federal stablecoin regulation without ownership caps.

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UK Regulator Imposes Strict Stablecoin Holding Limits to Safeguard Banks

Q: What are the Bank of England's proposed limits on stablecoin holdings?

The Bank of England has proposed temporary limits of £20,000 for individuals and £10 million for businesses holding systemic stablecoins.

Q: What is the Bank of England's rationale for the stablecoin holding limits?

The central bank has defended the restrictions as necessary to prevent rapid deposit outflows from commercial banks that could threaten credit availability, though it has promised to remove the caps once the transition no longer poses a risk to the UK economy.

10 Nov, 2025

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Summary

Bank of England proposes £20,000 cap on individual stablecoin holdings
Aims to prevent deposit outflows from commercial banks, drawing industry criticism
US takes different regulatory approach without ownership caps

UK Regulator Imposes Strict Stablecoin Holding Limits to Safeguard Banks

On November 10, 2025, the Bank of England has unveiled proposals for a regulatory regime governing sterling-denominated stablecoins. The central bank is introducing temporary limits of £20,000 for individuals and £10 million for businesses holding systemic stablecoins.

Deputy Governor Sarah Breeden has defended the restrictions as necessary to prevent rapid deposit outflows from commercial banks that could threaten credit availability. However, she has promised that the caps will be removed once the transition no longer poses a risk to the UK economy.

The proposed regime will see joint oversight by the Bank of England for prudential matters and the Financial Conduct Authority for consumer protection. The Bank has substantially revised its initial 2023 proposal, now permitting issuers to hold up to 60% of backing assets in short-term UK government debt securities while maintaining at least 40% in unremunerated Bank of England deposits.