Bank of England Proposes Draft Rules for Systemic Stablecoins with Issuance Cap

The Bank of England has released draft regulations targeting systemic stablecoins, aiming to ease reserve requirements while introducing a temporary issuance cap set at 40 billion pounds. These measures are designed to provide clearer guidelines for stablecoin issuers and help manage risks associated with their growing use.

According to CoinTelegraph, the new draft rules replace previous holding limits with this issuance cap, signaling a shift in how the central bank regulates the stablecoin market. This approach intends to balance innovation in digital currencies with financial stability concerns.

For Japanese investors and market participants, these developments highlight the increasing global regulatory focus on stablecoins, which could influence cross-border crypto and FX trading dynamics involving the pound and other major currencies.