Catenaa, Monday, October 13, 2025-The Bank of England plans to allow exemptions to proposed caps on stablecoin holdings, signaling a more flexible approach to digital assets as it seeks to keep pace with the United States.
Bloomberg reported that the bank intends to grant waivers to firms such as crypto exchanges that require large stablecoin reserves for liquidity and settlement.
The plan also includes allowing stablecoins as settlement assets in the Bank’s Digital Securities Sandbox, offering a controlled environment for blockchain-based trading and issuance.
The move comes amid pressure from the crypto industry, which warns that Britain’s restrictive rules risk driving innovation and liquidity to US markets under the Trump administration’s GENIUS Act.
Current proposals from the Bank of England and the Financial Conduct Authority would limit stablecoin holdings to £20,000 for individuals and £10 million for businesses.
However, exemptions and a revised consultation paper due later this year could relax those limits.
Governor Andrew Bailey, once critical of stablecoins, has recently acknowledged their potential to coexist with traditional finance.
The Bank’s gradual shift reflects a balancing act between regulation and innovation as global competition intensifies.
Stablecoins, used for more than $300 billion in global transactions, are seen as key to the next generation of payment systems.
