UK House of Lords committee calls on Bank of England to reconsider proposed stablecoin restrictions
A U.K. House of Lords committee urged the Bank of England to rethink proposed stablecoin rules, including caps on how much consumers and businesses can hold and a requirement that issuers keep at least 40% of reserves in non-interest-bearing central bank deposits. The committee said holding limits should not be imposed preemptively in the early GBP stablecoin market and should be used only if financial stability risks justify them. It also warned the reserve rule could hurt issuer viability in the U.K. The Bank of England had proposed limits of £20,000 per individual and £10 million per business, drawing criticism as too restrictive and potentially uncompetitive versus markets without such caps. The BOE has since indicated it may soften the framework and acknowledged the original approach was overly conservative.
