Bank of England faces backlash over stablecoin cap plans
Crypto firms warn that the Bank of England’s proposed stablecoin caps could hinder UK savers, complicate enforcement, and leave the country behind global regulatory peers.
Cryptocurrency groups are urging the Bank of England to abandon proposals that would cap the amount of stablecoins individuals and businesses can hold. Industry leaders argue the measures would leave the UK with stricter oversight than the US and the European Union.
Under the plan, individuals would face limits between £10,000 and £20,000, while businesses would be restricted to about £10 million in systemic stablecoins.
The central bank maintains that caps are needed to protect financial stability and prevent deposit outflows from banks. Executives argue the approach is unworkable and could damage London’s role as an economic hub.
Coinbase executive Tom Duff Gordon warned the limits would harm UK savers and undermine confidence in sterling. Others highlighted practical issues, noting that enforcement could require digital IDs, and pointed out the absence of similar caps on cash or bank accounts.
The Payments Association said the rules’ make no sense’ given how other jurisdictions are approaching stablecoins.
By contrast, the US introduced the GENIUS Act in July, setting licensing and reserve requirements without placing restrictions on holdings. The EU’s MiCA framework also avoids caps, focusing instead on reserves, governance, and regulatory oversight.
Industry voices now caution that the UK risks falling behind its global peers if the BoE proceeds with the current plan.
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