UK Bank Abandons Stablecoin Holding Limit Amid Global Regulatory Shift

The UK's central bank has made a significant policy change by abandoning its previous proposal to cap individual stablecoin holdings at £20,000.

Industry groups had strongly opposed this plan, and the Bank of England has now reconsidered another requirement for issuers – depositing 40% of reserve assets in zero-yield central bank accounts.

The policy shift is being seen as a response to the increasing trend of crypto-friendliness in US regulations, which are believed to have triggered a chain reaction among global regulators.