The House of Lords Financial Services Regulation Committee published its report 'Stablecoins: waiting for regulation' on June 2. The committee called on the Bank of England to reconsider restrictions that it said could have a significant impact on the business viability of stablecoin issuers in the UK. The report challenged the BoE's November 2025 consultation proposal requiring systemic stablecoin issuers to hold at least 40 percent of reserves in unremunerated central bank deposits. That consultation also proposed individual holding limits of GBP 20,000 per person and GBP 10 million per business. The committee recommended monitoring market growth and imposing limits only when financial stability risks clearly warrant intervention.
Deputy Governor Sarah Breeden confirmed on May 19 that the central bank will abandon individual holding limits for sterling stablecoins. The BoE will replace individual caps with aggregate issuance limits placed on token providers. A reduction of the unremunerated reserve floor from 40 percent to 20 percent remains under active consideration. The revised framework will permit traditional banking groups to issue stablecoins through non-deposit-taking, insolvency-remote entities.
The BoE expects to publish final draft rules for systemic stablecoins later in June 2026. A final code of practice is targeted for late 2026. The FCA has separately selected four participants for its stablecoin regulatory sandbox: Revolut, Monee Financial Technologies, ReStabilise, and VVTX. The framework will define how sterling-denominated stablecoins settle through the Bank's RTGS infrastructure alongside CHAPS and Faster Payments.