The Bank of England has expressed willingness to reconsider the limit scheme for stablecoin holdings

DeepFlowTech · 2026-03-12T05:24:33+00:00

Bank of England Deputy Governor Sarah Breeden has expressed an open attitude towards the regulation of stablecoins and is willing to accept other risk management solutions. Although proposals to set a cap on individual holdings of stablecoins have been criticized, she reiterated that non-custodial wallets will not be permitted due to lack of compliance safeguards.

DeepFlowTech

2026-03-12 05:24:33

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Deep Tide TechFlow News, March 12 — According to Cointelegraph, Sarah Breeden, Deputy Governor of the Bank of England, stated during a hearing before the UK House of Lords Financial Services Committee that regulators are open to capped schemes for stablecoins and are willing to consider alternative solutions that achieve similar risk management goals.

Previously, the Bank of England proposed setting a personal holding limit for stablecoins between £10,000 and £20,000 (approximately $13,368 to $26,733), aiming to prevent large-scale transfers of bank deposits into stablecoins that could impact credit supply. The proposal was criticized by multiple industry groups, who argued that it would harm the competitiveness of the UK crypto industry and stifle innovation.

Breeden also explicitly stated that non-custodial wallets holding stablecoins would not be permitted under the UK regulatory framework, citing the lack of compliance safeguards related to anti-money laundering and customer identity verification in such wallets. This stance differs from the current regulatory approach in the United States.

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