White House · CryptoSlate
Bank of England stablecoin caps may choke the UK’s pound-token market before launch
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A House of Lords committee has told the Bank of England to rethink stablecoin caps before the UK's regime is finalized.
Key facts
- In oral evidence to the committee in March, Sarah Breeden, the Bank's deputy governor for financial stability, said banks provide about 85% of household credit in the UK, compared with roughly 30%
- It says the global stablecoin market was estimated at more than $310 billion in 2026, overwhelmingly dominated by US dollar stablecoins and two issuers, Tether and Circle
- CryptoSlate has already covered adjacent UK payment infrastructure moves, including Revolut's pound stablecoin sandbox trial and the Bank's 24/7 settlement plans
- It also welcomes 1:1 backing, audited reserves, disclosure, statutory trust protections, and the proposed Bank backstop lending facility for systemic issuers
Summary
01 A House of Lords committee urged the Bank of England to rethink proposed pound stablecoin caps and reserve rules. 02 Lawmakers warned the £20,000 personal cap and 40% unremunerated Bank deposits could make GBP stablecoins uneconomic. 03 The committee wants the Bank to wait for market evidence and clarify when a stablecoin becomes systemic. The Financial Services Regulation Committee published its report, Stablecoins: waiting for regulation, on June 3, turning a technical debate over reserve design into a test of whether the UK can build a pound-denominated stablecoin market without making it uneconomic from the start.