Bank of England Deputy Governor Sarah Breeden announced on October 15, 2025, that the central bank plans to lift proposed limits on stablecoin holdings once they no longer pose a threat to financial stability. In her speech, Breeden highlighted that stablecoins offer innovation benefits but could trigger significant outflows from traditional banks, potentially restricting credit flow to households and businesses.
The BOE is evaluating temporary safeguards, including caps of £20,000 for individuals and £10 million for businesses, for systemically important sterling-pegged stablecoins. These limits could be gradually raised as confidence in the system improves, and a public consultation is scheduled by year's end to refine the proposals.
Breeden stated, "These will be temporary measures. We will remove the limits once we see that the transition no longer threatens the provision of finance to the real economy." The approach represents a softening from earlier BOE plans, aligning with global regulatory trends like the U.S. GENIUS Act. However, the crypto industry has opposed the caps, citing impracticality and calling for exemptions, particularly for large entities.
