Bank of England plans exemptions to stablecoin caps amid pressure. New waivers may support crypto exchanges needing large reserves. UK aims to balance innovation and regulation in digital finance. The Bank of England plans to introduce exemptions to its proposed stablecoin holding limits, signalling a measured pivot in response to mounting industry pressure and global regulatory competition. According to Bloomberg, the central bank intends to issue waivers for specific firms, including crypto exchanges that must hold significant stablecoin reserves. Also Read: LINK Tops DeFi Charts Again-Analysts Watch $23 Resistance for Breakout Proposed Caps and Sandbox Integration Under the original plan, individuals would face caps at £20,000 and businesses at £10 million in stablecoin holdings. Bloomberg further reports the BOE may permit stablecoins to serve as settlement assets within its Digital Securities Sandbox initiative. By allowing exemptions, the BOE seems to balance caution with flexibility. Crypto exchanges typically require large reserves to facilitate trading and liquidity, and exemptions would prevent undue operational constraints. Moreover, embedding stablecoins into settlement mechanics aligns with the BOE’s experimental push into digital securities infrastructure. The waiver plan responds to industry outcry. Firms warned that rigid caps could hobble innovation, drive business overseas, or encourage regulatory arbitrage. Observers also note that the US recently passed the GENIUS Act to regulate dollar-backed stablecoins; the UK must stay competitive or risk ceding ground. In an opinion piece in the Financial Times, BOE Governor Andrew Bailey described stablecoins not as adversaries but as potential drivers of payments innovation under proper safeguards. He emphasized that public trust will depend on rigorous conditions. Exemptions Could Reshape Framework Dynamics If exemptions apply broadly, regulatory certainty may improve for institutions navigating a strict cap regime. This shift could reassure market participants that the BOE aims not to stifle progress but to regulate pragmatically. However, the challenge lies in defining which entities qualify and ensuring fair oversight. The consultation later this year is expected to deliver precise thresholds and criteria. The BOE will need to thread a fine line between enabling crypto infrastructure and preserving financial stability. The evolving stance suggests the UK seeks to stay in the game, safeguarding both innovation and oversight. Also Read: BNB Surges as Bitcoin, Ethereum and Top Cryptos Slip in 24-Hour Market Shake-Up The post UK Central Bank to Grant Exemptions on Proposed Stablecoin Holding Caps appeared first on 36Crypto. Bank of England plans exemptions to stablecoin caps amid pressure. New waivers may support crypto exchanges needing large reserves. UK aims to balance innovation and regulation in digital finance. The Bank of England plans to introduce exemptions to its proposed stablecoin holding limits, signalling a measured pivot in response to mounting industry pressure and global regulatory competition. According to Bloomberg, the central bank intends to issue waivers for specific firms, including crypto exchanges that must hold significant stablecoin reserves. Also Read: LINK Tops DeFi Charts Again-Analysts Watch $23 Resistance for Breakout Proposed Caps and Sandbox Integration Under the original plan, individuals would face caps at £20,000 and businesses at £10 million in stablecoin holdings. Bloomberg further reports the BOE may permit stablecoins to serve as settlement assets within its Digital Securities Sandbox initiative. By allowing exemptions, the BOE seems to balance caution with flexibility. Crypto exchanges typically require large reserves to facilitate trading and liquidity, and exemptions would prevent undue operational constraints. Moreover, embedding stablecoins into settlement mechanics aligns with the BOE’s experimental push into digital securities infrastructure. The waiver plan responds to industry outcry. Firms warned that rigid caps could hobble innovation, drive business overseas, or encourage regulatory arbitrage. Observers also note that the US recently passed the GENIUS Act to regulate dollar-backed stablecoins; the UK must stay competitive or risk ceding ground. In an opinion piece in the Financial Times, BOE Governor Andrew Bailey described stablecoins not as adversaries but as potential drivers of payments innovation under proper safeguards. He emphasized that public trust will depend on rigorous conditions. Exemptions Could Reshape Framework Dynamics If exemptions apply broadly, regulatory certainty may improve for institutions navigating a strict cap regime. This shift could reassure market participants that the BOE aims not to stifle progress but to regulate pragmatically. However, the challenge lies in defining which entities qualify and ensuring fair oversight. The consultation later this year is expected to deliver precise thresholds and criteria. The BOE will need to thread a fine line between enabling crypto infrastructure and preserving financial stability. The evolving stance suggests the UK seeks to stay in the game, safeguarding both innovation and oversight. Also Read: BNB Surges as Bitcoin, Ethereum and Top Cryptos Slip in 24-Hour Market Shake-Up The post UK Central Bank to Grant Exemptions on Proposed Stablecoin Holding Caps appeared first on 36Crypto.