The Bank of England is reviewing parts of its proposed stablecoin regulatory framework after industry criticism, according to multiple reports. Financial Times and other outlets say a deputy governor has indicated that earlier plans may be “overly conservative” and that the central bank is “looking very hard” at alternative approaches.
The original proposals included restrictions that would tighten limits on issuers and set requirements related to reserves and other safeguards. The crypto industry has argued these measures could make the UK less competitive by discouraging stablecoin activity from remaining based in the country.
While details of any final changes are not settled, reporting suggests the BoE is reassessing specific elements of the draft rules, including caps and reserve-related conditions, as part of efforts to balance consumer and financial stability goals with the goal of keeping stablecoin issuers onshore. The review is described as ongoing, with no final policy decision reported in the articles.
