TLDR Tech / Crypto
Bank of England Softens Stablecoin Reserve Requirements
The Bank of England is walking back its strict stablecoin backing rules following pressure from the crypto industry. Deputy Governor Sarah Breeden said the BoE is "genuinely open to other ways" of managing the risk of rapid deposit flight from banks into stablecoins. Under the revised framework, systemic issuers can hold up to 60% of reserves in short-term UK government debt, with launch-phase issuers allowed up to 95% initially, rather than the heavier unremunerated central bank deposit requirements originally proposed. The BoE will finalize codes of practice later in 2026 after reviewing consultation feedback.
Read the full story