Bank of England considers easing stablecoin regulations

Sarah Breeden, the Bank of England's Deputy Governor for Financial Stability, told the Financial Times that the central bank's initial regulatory proposals for stablecoins may have been excessively conservative. She stated that the bank is now closely examining other ways to manage the risks associated with stablecoins, signaling a potential easing of the rules in response to industry feedback. The Bank of England had previously proposed limiting individual stablecoin holdings to £20,000 and corporate holdings to £10 million to prevent a run on traditional bank deposits. Breeden explained that the initial draft was written conservatively based on experiences with potential liquidity crises and added that the bank will now review whether its approach was overly cautious.