UK Lords Committee Urges Bank of England to Revisit Stablecoin Holding Limits
A UK House of Lords committee has called on the Bank of England to reconsider its proposed restrictions on stablecoin holdings. The proposal would cap individual holdings at 20,000 pounds per coin and business holdings at 10 million pounds. The development carries potential implications for sterling-denominated stablecoins and the broader regulatory environment in which RLUSD and similar assets operate.
A committee of the UK House of Lords has formally called on the Bank of England to reconsider limits it has proposed for stablecoin holdings. The restrictions, as currently drafted, would cap individual holdings at 20,000 pounds per coin and set a 10 million pound ceiling for businesses.
The proposed limits have drawn scrutiny from lawmakers who appear concerned that overly restrictive thresholds could hinder adoption and competitiveness of UK-regulated stablecoin products.
For the XRP ecosystem, the development is worth monitoring. Ripple has been expanding its RLUSD stablecoin and has pursued regulatory approvals across multiple jurisdictions, including the UK. Regulatory frameworks that either restrict or enable stablecoin usage directly affect the environment in which RLUSD and similar products can be distributed and held.
The outcome of the Bank of England review process remains open. A reconsideration could result in higher limits, revised criteria, or a fundamentally different approach to stablecoin oversight in the UK.
Key facts
- •UK House of Lords committee called on the Bank of England to reconsider proposed stablecoin restrictions
- •Proposed individual limit is 20,000 pounds per coin
- •Proposed business limit is 10 million pounds per coin
- •The committee challenge signals potential legislative pushback on the Bank of England proposal