UK Central Bank Bends on Stablecoin Rules as Industry Pushes Back Hard

The Bank of England just blinked—and crypto advocates are calling it a watershed moment for digital finance.

Regulatory Retreat

Facing mounting pressure from blockchain firms and traditional finance giants, UK regulators are softening their proposed stablecoin limits. The original framework would have imposed strict caps on transaction volumes and wallet holdings—measures that sparked immediate backlash across the industry.

Practical Compromises

Insiders say the revised rules maintain core consumer protections while allowing more flexibility for everyday crypto transactions. The changes reflect growing recognition that overly restrictive policies could push innovation offshore—something the UK can't afford as it battles to become a digital assets hub.

Another win for market reality over bureaucratic idealism—because nothing makes regulators reconsider quite like the sound of revenue heading elsewhere.

The Bank of England is reconsidering its earlier plan to impose strict limits on the amount of stablecoins that businesses can hold. According to Bloomberg, the central bank now plans to allow exemptions for certain firms, including cryptocurrency exchanges, that need to maintain large stablecoin reserves for settlement and liquidity.

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