Bank of England considers easing stablecoin holding limits

The Bank of England (BoE) is considering a regulatory approach that would manage the total supply of stablecoins rather than imposing individual holding limits, Bloomberg reported. This marks a significant shift from a proposal last November that would have capped individual holdings at £20,000 ($26,800) and corporate holdings at £10 million ($13.4 million). BoE Deputy Governor Sarah Breeden said the new approach could reduce the cost burden on the industry while allowing for a broader range of payment applications, including high-value corporate settlements. The BoE is expected to release a draft of its final regulatory framework next month, with the rules set to be finalized by the end of the year.