stable coins
By Evie Vavasseur
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What the Bank of England Actually Proposed. The Bank's plan is pretty much what it sounds like. Individuals holding a single stablecoin would…
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Lords Want a More Balanced Approach. The House of Lords isn't saying scrap regulation entirely.
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Where Things Stand Now. The outcome is still unclear. The Bank of England is deliberating, and no final decision has been…
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The UK House of Lords wants the Bank of England to back off. Specifically, it's pushing the central bank to rethink proposed caps that would limit individual stablecoin holdings…
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Those numbers have drawn sharp criticism. The Lords argue the restrictions are too blunt — that slapping hard ceilings on stablecoin ownership could freeze out legitimate use…
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The Bank's plan is pretty much what it sounds like. Individuals holding a single stablecoin would be capped at £20,000. Businesses would face a £10 million ceiling per coin.
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And the Bank isn't wrong to think about that risk. Stablecoins are pegged to traditional currencies, used for transactions, savings, and increasingly for cross-border payments.
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The House of Lords isn't saying scrap regulation entirely. That's probably the key thing to understand here.
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The Lords stress that oversight matters. But they also think the UK has built a real reputation as a fintech leader, and that reputation is worth protecting.
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Related: MoneyGram Launches MGUSD Stablecoin With Stripes Bridge on Stellar
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It's a competitive argument as much as a technical one.
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And it's probably landing with some force, given who's making it. The House of Lords carries weight in these deliberations.
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What's probably true is that the £20,000 individual cap is the more contentious number. For context, £20,000 isn't a huge sum — it's roughly the annual ISA allowance for UK savers.
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The £10 million business cap is less obviously problematic for smaller firms, but larger enterprises and institutional players will run into it quickly.
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More context: Veda Opens Kraken DeFi Earn Vault Stack to 2,000-Plus Privy Developers
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