Overview

• A Financial Times–cited proposal would cap individual stablecoin balances between £10,000 and £20,000 and set a business cap around £10 million.
• The Bank of England says limits aim to reduce the risk that rapid stablecoin uptake drains bank deposits and disrupts lending and monetary policy.
• UK crypto groups criticized the plan as harmful to innovation and competitiveness, with Coinbase’s Tom Duff Gordon arguing no other major jurisdiction has imposed such caps.
• The UK Cryptoasset Business Council warned enforcement could be costly and invasive, pointing to potential requirements like digital IDs or constant wallet coordination.
• The BoE characterizes the caps as potentially temporary, yet firms say the uncertainty is consequential given a $302 billion global stablecoin market and strong UK adoption.