Catenaa, Tuesday, September 16, 2025- The Bank of England’s proposal to cap how much stablecoin individuals and companies can hold, has sparked strong criticism from the crypto industry.
Many executives warn the plan could stifle innovation and push business overseas.
The central bank has suggested ownership caps of between £10,000 and £20,000 ($13,600–$27,200) for individuals and £10 million ($13.6 million) for businesses on systemic stablecoins, those widely used for payments.
Officials argue the limits are a safeguard to protect bank deposits from being drained into digital assets, but industry leaders say the measure is overly restrictive and nearly impossible to enforce.
Tom Duff Gordon, Coinbase’s vice president of international policy, told the Financial Times the plan would harm savers and make the City of London less competitive.
Simon Jennings of the UK Cryptoasset Business Council said issuers cannot realistically monitor ownership without costly new systems, such as digital IDs.
The proposal also risks straining ties between the Bank of England and the Treasury. Chancellor Rachel Reeves has pledged to advance blockchain innovation, while critics say the caps run counter to her agenda.
In contrast, the U.S. recently passed the GENIUS Act integrating stablecoins into its financial system, and the EU has enacted its MiCA rules without ownership restrictions.
The stablecoin market, now valued at $288 billion, could reach $1.2 trillion by 2028, according to Coinbase.
Industry groups warn that unless Britain adjusts its approach, it risks losing ground in the global digital finance race.
