BoE's Sarah Breeden Hints UK May Ease Proposed Stablecoin Holding Caps and 40% Reserve Rule

Bank of England Deputy Governor Sarah Breeden said the UK central bank is reassessing proposed limits on sterling stablecoin holdings and may have been "overly conservative". The plans previously included a 20,000-pound cap for individuals and a 10 million-pound cap for businesses, alongside a rule requiring 40% of backing assets to be deposited at the BoE. Breeden also said the BoE does not need to raise rates in June or July 2026, even as markets price in two or three hikes that year.