According to the Financial Times, regulators are proposing to cap individual holdings at £10,000 to £20,000 per person, citing concerns over systemic risk.
This move highlights the growing scrutiny of stablecoins as they become an increasingly important part of the financial ecosystem.
Understanding the Proposed Cap
Stablecoins are designed to maintain a stable value and are widely used for trading, payments, and savings in the digital asset space. The Bank of England’s proposal aims to prevent a scenario where the failure of a single stablecoin could trigger widespread financial instability. By limiting the amount any one person can hold, regulators hope to reduce the potential impact on the broader financial system if a major stablecoin were to collapse.
The Bank of England is proposing a cap on individual stablecoin holdings, limiting ownership to just £10,000–£20,000 per person in the name of “systemic risk.”
This is absurd, and we need to push back against this kind of regulation. Stablecoins issued onchain do not pose…
— Stani.eth (@StaniKulechov) September 15, 2025
For example, USDT and USDC have become staples in both crypto trading and cross-border payments. Combined, these stablecoins have market capitalizations exceeding $100 billion, with billions in daily trading volumes. The popularity of these digital dollars has made them attractive to investors, but it has also raised concerns among regulators who worry about the concentration of holdings in a single asset. Limiting individual exposure is one way to mitigate potential risks.
The stablecoin market cap keeps racing from one ATH to the next 📈
But one thing never changes…
➡️ USDT still dominates the market
➡️ USDC + newer entrants haven’t managed to meaningfully chip away at Tether’s share in years pic.twitter.com/RQKQKeB5uE— Leon Waidmann 🔥 (@LeonWaidmann) September 15, 2025
The Bank of England’s approach is notable because it directly limits user holdings rather than just setting rules for issuers. This could have implications for investors who use stablecoins for savings, remittances, or as a hedge against market volatility. While the cap may seem restrictive, it underscores the regulators’ priority: protecting financial stability while the crypto ecosystem matures.
More About USDT
Paolo Ardoino, the founder of Tether, highlighted the company’s growing role in the Bitcoin market, noting that over the past 12 months, Tether added more Bitcoin to its reserves than all but three ETFs.
Tether ❤️ Bitcoin
Tether added more BTC to its reserves in the last 12 months than all but 3 ETFs, while also contributing to XXI, the 3rd largest Bitcoin Treasury company behind Strategy and MARA.
Thanks to @FarsideUK for the ETF data pic.twitter.com/Ue2xz35JCB
— Paolo Ardoino 🤖 (@paoloardoino) September 8, 2025
In addition, Tether has contributed to XXI, now the third-largest Bitcoin treasury company, trailing only Strategy and MARA. This underscores Tether’s strategy of holding significant crypto reserves, strengthening its position in the market while supporting transparency and stability within the broader digital asset ecosystem.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies presented are the thoughts and opinions of the writer/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments; therefore, please conduct your due diligence. Copyright Altcoin Buzz Pte Ltd.
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