The Bank of England released its final policy statement and draft rules for systemic stablecoins on Monday, significantly easing several previously proposed requirements. Compared to earlier drafts, the new rules eliminate the planned cap on individual stablecoin holdings, instead introducing a temporary issuance limit of £40 billion (approximately $52.8 million) per stablecoin.
Regarding reserve asset requirements, the central bank allows issuers to hold up to 70% of reserves in short-term UK government bonds, up from the previously proposed 60%, with the remainder required to be deposited in non-interest-bearing accounts at the Bank of England. The consultation period runs until September 22, and the final rules are expected to be established by the end of 2026. Regulated stablecoins are scheduled to begin operations in the UK in 2027. (decrypt)