February 27, 2026

Bank of England proposes cap on stablecoin holdings, risks innovation

Stablecoin Market Caps vs Crypto Market Liquidity

The UK is finalizing stablecoin regulations that could hinder its competitiveness in the global digital economy, particularly due to a proposed cap on stablecoin holdings for individuals and businesses from the Bank of England. Advocates argue that these measures contradict the UK’s history as a financial hub and could stifle innovation at a time when other regions, such as Singapore and the EU, are adopting more permissive frameworks to sustain their digital asset industries. Crypto advocacy groups are mobilizing public petitions to encourage regulators to support a pro-innovation strategy for blockchain and stablecoins.

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