Bank of England Reassures Crypto Market with Temporary Stablecoin Limits

The Bank of England has sought to alleviate industry concerns by clarifying that proposed restrictions on stablecoin holdings and transaction sizes are provisional. Deputy Governor Sarah Breeden emphasized during DC Fintech Week that these measures aim to ensure financial stability without stifling innovation. "The limits allow the structure of real-economy financing to adjust and enable us to monitor adoption of stablecoins," she stated, addressing fears of banking system destabilization from rapid crypto integration.

Industry pushback had been significant, with critics arguing that initial thresholds—ranging from $13,429 to $26,858—would signal hostility toward crypto businesses. The central bank plans a year-end consultation on its regime for sterling stablecoins in systemic payment systems, inviting stakeholder feedback. This MOVE comes as London positions itself at the intersection of digital assets and traditional finance during events like fmls25.