The Bank of England has published a new draft regulation for systemically important stablecoins, relaxing reserve requirements and replacing individual holding limits with a temporary £40.000 billion issuance cap. This move paves the way for the launch of its final framework, expected in 2027.
The update addresses industry concerns and seeks to balance technological innovation with macroeconomic stability. This pragmatic approach aligns with recent regulatory developments in Europe under the MiCA Regulation, marking a milestone in the integration of digital assets into the traditional economy.
The Bank of England's new approach to tied assets
The European and British regulatory landscape continues to evolve at a rapid pace. Recently, the British central institution has presented a policy statement and draft rules for systemic stablecoinsThis document details in detail how those crypto assets backed by the pound sterling that achieve mass adoption in the everyday payments ecosystem will operate in the United Kingdom.
One of the most notable changes in this new draft is the relaxation of reserve requirements for companies. Issuers of these stablecoins will be able to hold up to 70% of their reserves in government bonds that generate rewards, a significant increase from the 60% proposed in previous drafts. This measure aims to offer greater operational viability and financial flexibility to issuing companies, without compromising the strength of the backing that maintains the asset's parity.
The adjustment to reserve requirements is not a minor detail. By allowing a higher proportion of government debt, the Bank of England acknowledges the need for issuers to manage their treasuries efficiently, ensuring cash flow to support their technology and regulatory compliance operations. All of this is done while maintaining a known and managed risk that protects end users.
Goodbye to individual limits: a global cap of 40.000 billion
In their initial consultation published in November 2025, British authorities had proposed very strict restrictions on the use of these assets: a holding limit of £20.000 per individual and a maximum of £10 million per company. However, after an intensive period of dialogue and after listening to warnings from the crypto sector, these restrictions have been removed and replaced by a temporary issuance limit set at £40.000 billion (approximately €47.000 billion).
This change of course has a clear and direct objective: to prevent restrictions from stifling the usability of stablecoins in the daily lives of citizens and corporations. By removing individual limits, it becomes much easier for anyone to build their portfolio and use these assets for everyday payments, international transfers, or business settlements without artificial friction.
The global limit of £40.000 billion acts as a macroeconomic safeguard. According to the institution itself, this cap will be reviewed periodically and removed once the ecosystem demonstrates operational maturity and resilience in the face of financial stress.
In conclusion, the Bank of England's new regulatory approach marks a transition towards a more open and modern financial ecosystem. By prioritizing global limits over individual restrictions, the UK is strategically positioning itself to compete with the European Union's MiCA framework, ensuring that crypto innovation thrives under a safe and predictable supervisory structure by 2027.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
