What happened? The Bank of England will publish a new stablecoin regulatory framework on November 10 to align with U.S. developments.
The BOE announced a dual‑tier regime that targets “systemic” stablecoins while leaving smaller issuers under the FCA’s lighter rules. The plan includes temporary holding caps — about £20,000 for individuals and £10 million for businesses — and other safeguards. The aim is to protect banks and the mortgage market from rapid deposit shifts while letting digital payments innovation continue.
Who does this affect? Consumers, businesses, banks, and crypto firms will all feel the impact.
Retail users holding large amounts of stablecoins could hit the new individual caps and face limits on how they store tokenized money. Businesses, payment providers, and stablecoin issuers will need to adapt to the dual‑tier rules and possible operational or compliance changes. Banks and mortgage lenders may see less deposit outflow risk, but crypto firms may face higher regulatory scrutiny and costs.
Why does this matter? This will change market dynamics by shaping where and how stablecoins and tokenized finance grow in the UK.
Clear rules reduce uncertainty, which can attract institutional investment and speed adoption of digital payments and tokenized assets. At the same time, holding caps and stricter rules for systemic coins could limit large-scale use and influence liquidity, funding costs, and product design across markets. By moving in step with the U.S., the UK hopes to stay competitive as a hub for responsible crypto innovation while managing financial stability risks.