Bank of England Proposes Stablecoin Ownership Limits — Industry Pushes Back

Bank of England Proposes Stablecoin Ownership Limits — Industry Pushes Back

On September 14, 2025, the Bank of England (BoE) introduced a proposal that would limit how much stablecoin individual people and businesses can hold in the UK. Individuals might be capped between £10,000 and £20,000, while businesses could be limited to £10 million in stablecoins. The BoE says these limits aim to prevent risks tied to massive stablecoin holdings that could drain deposits from traditional banks. 

Crypto industry leaders reacted sharply. Companies like Coinbase, and industry bodies such as the UK Cryptoasset Business Council, argue the caps are overly restrictive, technically hard to enforce (because crypto is decentralized), and could make the UK less competitive compared to the U.S. or EU. They also warn that stablecoins deliver fast, cross-border, low-cost payment advantages, which might suffer under strict limits. 

What might happen:

• The proposal might be temporary, a transition measure while regulators sort out broader stablecoin regulation. 

• If adopted, individuals and firms holding more than the cap might need to split holdings across platforms/custodians or convert part to other assets.

• The UK could risk losing talent, business, or crypto capital to other jurisdictions with lighter or more stablecoin-friendly regulation.