TechFlow news, March 12: According to Cointelegraph, Sarah Breeden, Deputy Governor of the Bank of England, stated during a hearing before the UK House of Lords’ Financial Services Regulation Committee that regulators remain open to capped approaches for stablecoins and are willing to consider alternative solutions that achieve equivalent risk-mitigation objectives.
Previously, the Bank of England proposed capping individual holdings of stablecoins at between £10,000 and £20,000 (approximately $13,368–$26,733), aiming to prevent large-scale migration of bank deposits into stablecoins and thereby safeguard credit supply. This proposal has drawn criticism from multiple industry groups, who argue it would undermine the competitiveness of the UK’s crypto industry and stifle innovation.
Breeden also explicitly stated that holding stablecoins in non-custodial wallets will not be permitted under the UK’s regulatory framework, citing the absence of regulated entities to ensure compliance with anti-money laundering (AML) and customer due diligence (CDD) requirements. This stance diverges from the current U.S. regulatory approach.
