world-economy

Bank of England Explores New Framework for Stablecoin Regulation

The Bank of England is reconsidering its approach to stablecoin oversight following pushback from market participants. Deputy Governor Sarah Breeden indicated Tuesday that regulators are evaluating a framework centered on temporary guardrails limiting the total issuance of stablecoins, rather than restricting individual holdings as previously proposed. The shift signals the central bank's willingness to balance financial stability concerns with industry concerns. Stablecoin issuers have argued that holding restrictions could hamper market development and liquidity. The guardrails approach would establish upper bounds on how much supply a single stablecoin could reach, providing a different regulatory pathway.