The Financial Times (FT) reported that cryptocurrency organizations are insisting that the Bank of England (BoE) drop its plans to limit the quantity of stablecoins that individuals and businesses can possess.

The stakeholders in the crypto sector highlighted that these proposed regulations could create a regulatory environment in the UK that is more stringent than that of the U.S. or the EU.

The Bank is suggesting caps on systemic stablecoin holdings, with individual limits ranging from 10,000 to 20,000 British pounds ($13,600–$27,200) and around 10 million British pounds ($13.6 million) for businesses. This initiative aims to avoid a potential outflow of bank deposits, which could jeopardize financial stability.

Quote from Sasha Mills: “The limits would mitigate risks from sudden deposit withdrawals.”

However, industry experts argue that the initiative is impractical. Tom Duff Gordon from Coinbase stated, “imposing caps on stablecoins is detrimental for U.K. savers, the financial market, and the British pound.” Simon Jennings mentioned that enforcing such limits would be nearly impossible without innovative solutions like digital IDs. Furthermore, Riccardo Tordera-Ricchi indicated that imposing restrictions on digital currency holdings does not align with existing practices where cash and bank account balances are not capped.

In contrast, the U.S. recently enacted the GENIUS Act, creating a regulatory framework for stablecoins without limiting ownership amounts. Likewise, the European Union’s Markets in Crypto-Assets Regulation (MiCA) places emphasis on reserves and governance rather than imposing caps on holdings.