January 17, 2026

Crypto Industry Unimpressed by Possible Exemptions from Bank of England Stablecoin Cap

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Crypto ‍industry Unimpressed by Possible Exemptions from Bank of England Stablecoin Cap

LONDON – A recent proposal by the Bank of ‍England to introduce exemptions ⁢to its strict forthcoming cap on stablecoin holdings has been met with a cool reception from‍ the UK’s cryptocurrency industry. Leaders and ⁢innovators within the⁢ sector argue that the proposed ​carve-outs are too narrow and fail to address basic concerns that the overall‍ cap will stifle innovation, limit consumer choice, and hinder the UK’s ability to compete as a global hub for digital assets.

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Wrapping Up

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Outro ⁣1:

As the consultation period on the ‌proposed regulations continues,the initial reaction from the crypto sector signals a notable gap between the ‌Bank of England’s intentions and the industry’s expectations.⁢ While‍ the potential exemptions represent an acknowledgment of the market’s complexities, they have failed to assuage fears that the overall cap could stifle innovation and competition. the path forward remains uncertain, and the coming months will⁣ be crucial in determining whether ‍the UK can strike a balance that protects financial stability without compromising its ambition ⁢to become a global crypto-asset hub.

Outro 2:

The crypto industry’s lukewarm reception to the Bank of England’s proposed exemptions underscores a fundamental tension: the regulator’s caution versus the sector’s call⁢ for ⁣a more permissive framework. For now, industry leaders contend​ that the proposed cap, even with carve-outs, may ‍prove​ too restrictive to foster ⁣genuine growth. The⁤ final shape of these ​regulations will not only define the future for stablecoin

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