The post U.K. regulator mulls £20K cap on ‘systemic stablecoins’ for retail users appeared on BitcoinEthereumNews.com. Key Takeaways  Why has BoE ditched 2023 stablecoin proposals? To cater to industry demands and mirror other frameworks in other regions.  When will these rules be implemented?  The Bank of England will issue the final rules in H2 2026 after reviewing industry feedback early next year. In the latest revised plans for the stablecoin guidelines, the Bank of England (BoE) proposed that issuers back their Sterling-based stablecoins through a 60/40 formula.  The 60% reserve backing would be in interest-bearing short-term government debt or bonds (T-bills), while parking another 40% (non-interest) with the bank.  In contrast, the U.S. stablecoin law, the GENIUS Act, requires 100% of reserve backing to be in T-bills or cash equivalents, and issuers get all the yield.  The BoE’s move comes after industry players pushed back against the 2023 proposal, which sought to have the entire 100% reserve assets held by the bank, with no yield.  At that time, the players argued that the prior proposal was inconsistent with U.S. law and the stablecoin revenue model.  Reacting to the changes, BoE’s Governor, Andrew Bailey, said,  “We have listened carefully to and are grateful for the feedback received, which has shaped the proposals we are consulting on today. Following this consultation, we will consider the feedback received before consulting on and finalising our rules in 2026.” Stablecoin caps remain Despite the softer stance on reserve assets, the bank will continue to implement the controversial stablecoin caps for individual and business holdings at £20K and £30 million, respectively.  Worth noting that major financial hubs don’t have similar strict restrictions on stablecoin holdings. But for BoE, it would,  “Cap potential outflows of bank deposits to systemic stablecoins in aggregate and so limit the potential impact on credit availability.” The so-called “systematic stablecoins” or payment stablecoins, which are widely used, will… The post U.K. regulator mulls £20K cap on ‘systemic stablecoins’ for retail users appeared on BitcoinEthereumNews.com. Key Takeaways  Why has BoE ditched 2023 stablecoin proposals? To cater to industry demands and mirror other frameworks in other regions.  When will these rules be implemented?  The Bank of England will issue the final rules in H2 2026 after reviewing industry feedback early next year. In the latest revised plans for the stablecoin guidelines, the Bank of England (BoE) proposed that issuers back their Sterling-based stablecoins through a 60/40 formula.  The 60% reserve backing would be in interest-bearing short-term government debt or bonds (T-bills), while parking another 40% (non-interest) with the bank.  In contrast, the U.S. stablecoin law, the GENIUS Act, requires 100% of reserve backing to be in T-bills or cash equivalents, and issuers get all the yield.  The BoE’s move comes after industry players pushed back against the 2023 proposal, which sought to have the entire 100% reserve assets held by the bank, with no yield.  At that time, the players argued that the prior proposal was inconsistent with U.S. law and the stablecoin revenue model.  Reacting to the changes, BoE’s Governor, Andrew Bailey, said,  “We have listened carefully to and are grateful for the feedback received, which has shaped the proposals we are consulting on today. Following this consultation, we will consider the feedback received before consulting on and finalising our rules in 2026.” Stablecoin caps remain Despite the softer stance on reserve assets, the bank will continue to implement the controversial stablecoin caps for individual and business holdings at £20K and £30 million, respectively.  Worth noting that major financial hubs don’t have similar strict restrictions on stablecoin holdings. But for BoE, it would,  “Cap potential outflows of bank deposits to systemic stablecoins in aggregate and so limit the potential impact on credit availability.” The so-called “systematic stablecoins” or payment stablecoins, which are widely used, will…