Woofun AI reports that the Bank of England has issued its final policy statement on systemically important stablecoins, significantly softening earlier regulatory proposals. The central bank discarded initial plans to restrict individual holdings, opting instead for a temporary issuance cap of £40 billion per stablecoin type. This adjustment aims to balance market stability with operational flexibility for issuers.

Concurrently, reserve requirements have been liberalized, permitting issuers to allocate up to 70% of assets to short-term British government bonds, an increase from the previously proposed 60%. The remaining reserves must be held in interest-free accounts at the central bank. Stakeholders may submit feedback until September 22, with final rules anticipated by late 2026 and program implementation slated for 2027.