Bank of England Eases Stablecoin Rules in June 2026 Shift
The Bank of England removed individual holding caps for sterling stablecoins and introduced a £40 billion issuance limit per token in its 22 June 2026
Summary
- The Bank of England removed individual holding caps for sterling stablecoins and introduced a £40 billion issuance limit per token in its 22 June 2026 policy statement.
- Issuers can now allocate up to 70 percent of reserves in short-term UK government debt, an increase from the prior 60 percent proposal.
- The move forms part of broader stablecoin regulation efforts while separate US and EU frameworks create potential cross-border differences.
The Bank of England released its policy statement on 22 June 2026. It covers sterling-denominated systemic stablecoins. The statement drops earlier proposals for individual holding caps. It caps issuance at £40 billion per stablecoin instead.
This shift shapes regulation under the Bank of England crypto policy framework.
The announcement arrives amid global crypto developments. It gives issuers clearer parameters for sterling-backed tokens. It also signals a more flexible UK stance.
Context
Stablecoin rules attract more focus now. Digital assets move into everyday finance. The Bank of England once proposed tighter per-user limits to curb systemic risks.
The revised approach balances oversight with market growth.
Global shifts add pressure. The US GENIUS Act sets its own stablecoin rules. The EU MiCA framework has run since late 2024. These separate regimes may create inconsistencies for cross-border issuers.
Details
The policy sets a £40 billion issuance limit per stablecoin. It permits issuers to hold up to 70 percent of reserves in short-term UK government debt. The Bank of England document outlines the regime for sterling systemic stablecoins.
"The BoE dropped proposed individual holding caps and instead set a £40 billion issuance limit per stablecoin. The BoE raised to 70% from 60% the ..."
, Reuters (www.reuters.com)
These adjustments ease some compliance burdens. They keep the overall issuance ceiling in place. The reserve change gives firms more flexibility on liquidity. Core safety requirements stay intact.
The statement stays focused on systemic stablecoins. It does not cover non-sterling tokens.
Outlook
Issuers will review the draft rules now. They check compliance timelines ahead. The Bank of England expects to finalize the regime in coming months.
Market participants should monitor how the £40 billion limit and updated reserve rules interact with US and EU developments.
