TechFlow News, May 14: According to a Cointelegraph report, the Bank of England (BoE) is reassessing its regulatory framework for sterling-pegged stablecoins. Previously, in its November 2025 consultation paper, the BoE proposed a cap of £20,000 on individual holdings of any single sterling-pegged stablecoin and a cap of approximately $13.5 million for enterprises, while also requiring that at least 40% of reserve assets be held in non-interest-bearing form at the central bank. Industry stakeholders widely criticized these proposals as operationally burdensome, profit-margin compressing, and potentially detrimental to the competitiveness of UK-based stablecoins in institutional markets.
Sarah Breeden, Deputy Governor of the BoE, stated that the central bank is exploring alternative approaches to strike an appropriate balance between financial stability and market competitiveness. Currently, sterling-pegged stablecoins account for a negligible share of the global stablecoin market—valued at roughly $300 billion—with dollar-pegged tokens continuing to dominate.
