The Bank of England is considering replacing holding limits with issuance limits for stablecoins.

According to Bloomberg, the Bank of England is considering an alternative proposal in response to industry opposition to its suggested cap on stablecoin holdings. Sarah Breeden, Deputy Governor of the Bank of England, stated that the central bank is exploring the introduction of a temporary “safeguard” on the total issuance of stablecoins as an alternative to the existing proposal. This statement indicates that the Bank of England is reassessing its regulatory framework for stablecoins.