BoE Softens Stablecoin Rules, Sending Ethereum Prices Higher

The Bank of England (BoE) has softened its proposed rules for sterling-denominated stablecoins, lifting crypto sentiment and boosting Ethereum's price. The central bank dropped a contentious plan to restrict individual holdings of stablecoins in private wallets. Instead, policymakers will impose a total issuance limit per stablecoin product, initially capped at £40 billion.

The BoE also relaxed its backing-asset criteria, allowing issuers to hold up to 70% of their capital reserves in short-term UK government debt securities, up from the 60% limit outlined in the previous consultation paper. The remaining 30% must be maintained in non-interest-bearing central bank deposits.

This regulatory pivot indicates a growing willingness among monetary authorities to accommodate the development of fiat-pegged digital currencies while preserving necessary safeguards for financial stability.

Ethereum experienced a mild boost, advancing by 0.89% to finish the trading session at $7,727. Technical analysis suggests that Ethereum continues to navigate a well-defined long-term downward trajectory, with significant resistance levels and support zones identified.