The Bank of England has hinted at a possible easing of restrictions on stablecoin holdings.

CoinFeed reported on March 12, citing Bloomberg, that Bank of England Deputy Governor Sarah Breeden hinted that regulators might soften their strict stance on capping stablecoin holdings, a proposal that had drawn strong opposition from the digital asset industry. Last November, the Bank proposed temporary caps of £20,000 for individuals and £10 million for businesses holding stablecoins deemed systemically important, to prevent risks arising from sudden transfers of customer deposits from banks to stablecoins. However, stablecoin issuers and the crypto industry warned that these caps would be difficult to enforce and could stifle innovation. Speaking before a House of Lords committee, Breeden stated that the Bank is “open to other ways” to achieve its goal of protecting the UK economy and is reviewing feedback received on the consultation paper from last November.