To Westminster for Digital Asset Week, where the Bank of England's response to industry backlash on its plans for stablecoins is getting a lot of airtime. Clear take from Anna Irrera at Bloomberg here:
🪙 📰 The Bank of England plans to grant exemptions to proposed limits on stablecoin holdings by businesses, indicating a softening stance toward cryptoassets amid growing competition from the US. 💡 The UK central bank intends to grant waivers to certain firms, such as crypto exchanges that need to hold large amounts of stablecoins, according to a person familiar with the matter. The BOE will also allow firms to use stablecoins as a settlement asset in its experimental Digital Securities Sandbox, people familiar with the matter said. BOE officials have faced fierce push back over the planned stablecoin caps, with the industry warning that any limits on holdings will be difficult to enforce. Many in the digital payments industry have voiced concerns to BOE officials, flagging that the UK may struggle to compete with the Trump administration’s Genius Act, which sets rules around dollar-backed stablecoins. Some stats: Of the roughly $303 billion worth of stablecoins in circulation, only $581,000 worth of tokens are pegged to the British pound. 📉 Read more in scoop below w/Tom Rees + Emily Nicolle With thoughts on the regulatory/policy environment for stablecoins in the UK from Sean Kiernan Jannah Patchay and Tony McLaughlin
