UK House of Lords committee suggests central bank reassess stablecoin holding limits

The Bank of England has proposed a personal stablecoin holding limit of £20,000, and a corporate limit of £10 million. The UK House of Lords Financial Services Regulation Committee has recommended reassessing this restriction and reconsidering the requirement for stablecoin issuers to hold at least 40% of their backing in non-interest-bearing central bank deposits. The committee stated that market growth should be monitored and that holding limits should only be implemented if financial stability risks become clear.