Bank of England eases stablecoin regulations

The Bank of England (BoE) has announced its final regulatory framework for stablecoins, easing some of its previously proposed restrictions, Decrypt reported. The central bank has scrapped a previously considered limit on individual stablecoin holdings. In its place, the BoE has introduced a temporary guardrail that caps the total issuance size per stablecoin at 40 billion pounds (approximately $53 billion). Additionally, reserve asset regulations have been relaxed. Issuers are now permitted to invest up to 70% of their reserves in interest-bearing government debt, such as short-term UK government bonds. This is an increase from the 60% previously proposed.