Crypto Groups Challenge Bank of England’s Proposed Stablecoin Ownership Limits

The Bank of England's plan to impose strict ownership limits on stablecoins has drawn sharp criticism from cryptocurrency advocates. Proposed caps of £10,000–£20,000 for individuals and £10 million for businesses would position the UK with more stringent regulations than the US or EU, potentially stifling innovation in the sector.

Industry leaders argue these measures could undermine the UK's financial competitiveness. "Imposing caps on stablecoins is bad for UK savers, bad for the City and bad for sterling," said Tom Duff Gordon of Coinbase, noting the absence of similar restrictions in other major jurisdictions.

The central bank maintains the limits are necessary to safeguard financial stability, particularly against sudden deposit outflows that could weaken credit provision. However, crypto executives counter that the proposal is impractical and could drive innovation elsewhere.