UK House of Lords Committee Urges Bank of England to Reassess Stablecoin Limits
- The U.K. House of Lords committee recommended the Bank of England (BOE) reconsider its proposed limit of £20,000 ($27,000) for individual stablecoin holdings.
- The committee also questioned the requirement for stablecoin issuers to hold at least 40% of backing assets in central bank deposits.
- The proposed business limit is £10 million ($13.5 million), which some believe could hinder the U.K.’s competitiveness in the stablecoin market.
- Sarah Breeden, BOE’s deputy governor for financial stability, acknowledged last month that some restrictions were “overly conservative.”
- The report suggests monitoring market growth before imposing limits on stablecoin holdings.
This recommendation comes amid concerns that strict regulations could impact the viability of stablecoin issuers in the U.K., especially given the early stage of the GBP stablecoin market.
As the BOE considers easing restrictions, it highlights a need for balanced regulation in a rapidly evolving financial landscape, particularly with limits like £20,000 per individual potentially stifling growth.(Source)
