Crypto Industry Pushes Back Against Bank of England’s Stablecoin Cap Proposal

The crypto industry is criticizing the Bank of England (BoE) for its recently proposed limits on stablecoin ownership in the country. Major crypto groups in the region are predicting that these limits could put the United Kingdom at a disadvantage compared to other major crypto markets. According to the report shared by the Financial Times, the Bank of England is proposing new rules that will add new limits on individuals and businesses.

Under the new rules, business will be limited to holding stablecoins around £10 million ($13.6 million) whereas individuals could hold systemic stabelcoins between £10,000 and £20,000 ($13,600–$27,200). Systemic stablecoins are defined as tokens already widely used in U.K. payments or expected to gain significant adoption in the future.

The Bank of England Proposes New Rules for Stablecoins

The central bank argues the limits are necessary to guard against large-scale deposit outflows from traditional banks, which could weaken credit provision and threaten financial stability. Sasha Mills, BoE’s executive director for financial market infrastructure, said the caps would help mitigate risks tied to sudden withdrawals and the expansion of new payment systems.

However, industry leaders insist the plan is impractical and out of step with international norms. Tom Duff Gordon, Coinbase’s vice president of international policy, warned that “imposing caps on stablecoins is bad for U.K. savers, bad for the City and bad for sterling,” adding that no other major jurisdiction has introduced such measures.

Simon Jennings of the U.K. Cryptoasset Business Council said enforcement would be “nearly impossible” without introducing digital identity systems. Meanwhile, Riccardo Tordera-Ricchi of The Payments Association argued that the restrictions “make no sense” given that there are no comparable caps on cash or bank deposits.

By contrast, regulators in the U.S. and European Union have opted for frameworks emphasizing oversight and reserves rather than ownership limits. The U.S. recently enacted the GENIUS Act, which sets licensing and reserve requirements for stablecoin issuers without capping individual holdings. Similarly, the EU’s Markets in Crypto-Assets Regulation (MiCA), which took full effect this year, regulates reserves, governance, and compliance across the bloc but imposes no limits on how much individuals or firms can hold.

With critics warning the U.K.’s approach could stifle adoption and drive innovation overseas, the BoE now faces mounting pressure to reconsider its stance.