UK to Synchronize Stablecoin Regulation with US, Imposing Initial Holding Limits

The Bank of England (BoE) is set to quickly introduce new regulations for stablecoins used in systemic payment systems, aiming to move in lockstep with the United States.

BoE Deputy Governor Sarah Breeden confirmed on November 5, 2025, that rules for these “systemic” stablecoins will be rolled out “just as quickly as in the US,” with a formal consultation opening on November 10.

Key Provisions of the Proposed Framework:

• Focus on Systemic Use: The framework will only apply to stablecoins used for large-scale or critical payments, not those primarily for crypto trading or speculation, which are deemed to pose “limited systemic risk.” Breeden stressed the goal is to ensure stablecoins used for “real-world payments” meet traditional financial standards.
• Temporary Holding Limits: To ensure a “safe and orderly introduction,”the BoE plans to impose temporary caps on stablecoin holdings:
  • Individuals: Limited to £20,000.
  • Businesses: Limited to £10 million.
• Close US Coordination: The UK’s approach is being developed in close coordination with US regulators through the joint Digital Assets and Capital Markets Task Force. The UK’s rules will mirror key aspects of the US GENIUS Act, notably requiring stablecoin reserves to be held entirely in short-term government debt or Treasury bonds.

This announcement highlights a global push by major economies to define a harmonized global rulebook for stable digital currencies, integrating them into payment systems while safeguarding financial stability.

November 2025, Cryptoniteuae