Bank of England Proposes £20,000 Individual Cap on Systemic Stablecoin Holdings

The Bank of England has released a consultation paper proposing temporary holding limits of £20,000 for individuals and £10 million for businesses on sterling-denominated systemic stablecoins. Deputy Governor Sarah Breeden said the caps aim to prevent rapid deposit outflows from commercial banks that could threaten credit availability. Industry leaders have criticized the restrictions as overly cautious compared to the U.S. GENIUS Act framework, which imposes no ownership limits.